9 Minute Read

Tackle Today: Charting with multiple time frame analysis

June 9, 2020

By | No Comments

Technical Analysis 101. Essential for Beginners.

Last update: August 2021

≈ Seeing the market from many vantage points ≈

Markets are down this morning for the first day in a few weeks. When the S&P 500 broke out of resistance and the 200-day simple moving average, the bulls ran with price action. Now we are seeing a red candle, at least in the first hour of trading, at least on the daily candlestick charts. Some of this is being attributed to the market hesitating in front of the FOMC meeting tomorrow. Others are just calling it a day of profit-taking.

Neither of those reasons matter, frankly, as the key thing to do as a short-term trader is focus on price action and build plans for entry, management, and exiting your trades. The best way to do this is to have a good view of all the chart levels that matter the most by using multiple time frame analysis.

When you are reading charts, the most common time frame to look at is the daily candlestick chart. But that is not enough to evaluate the true conditions of technical analysis. Multiple time frame analysis is a key skill to develop. Every trader should have the ability to go down into shorter time frames like the 5 min, 15 min, and hourly charts. Every trader should also back out their time frame to analyze weekly candles and monthly candles to get a view of the big picture.

Which time frames you use, and how many, is a matter of personal preference. Some of the coaches at Tackle Trading will look at many different time frames, while others might stick to 3 or 4.

During any given trade, it’s important to know what’s happening on the Intraday, Daily, and Weekly charts. This will give you greater confidence, and more information to make decisions with when you’re executing your trades.

Chart of the Day: $SPY Multiple Time Frame: 5 min, 1 Hr, Daily, Weekly candlesticks.

In the chart above, you see the ETF SPY with a 5 minute, 1 hour, Daily and Weekly candle chart setup.

Video of the Day: How to perform multiple time frame analysis on a swing trade

In this video, Coach Noah shows you exactly how to do a multiple time frame analysis on a swing trading. A look at how to determine the MMM or the expected move for a stock on earnings.

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Book a FREE Consultation

Sign up for a free consultation to build your Educational Plan.