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Various time frame analysis

Student Question: Why do you sometimes use 15 minutes chart sometimes 60 minutes & sometimes 1 day chart to draw support & resistance lines? One of the most common mistakes made by traders is to approach charts already with an idea in mind.

If you are looking for a triangle all you will see is triangles...

My approach in defining s/r is one of looking through all instruments and all time frames and merely drawing in s/r where it jumps at me

another principle would be that price has different behavior in different time frames'

(it can be trending down on 15, be sideways in daily and be trending up on weekly)

Considering directional support/resistance drawings across all time frames illustrates which group of traders perceives the market in whatever condition to be.

In addition I might need information from a specific time frame at various times of the day.

For example:

I typically make also trend lines through other instruments of the same time frame if i want to see if there is relative weak ness or strength during the NY trading session


after I made my daily call I am looking on the 60 min time frame for possible s/r zones since this will be my main entry tool for the upcoming session


I made trendlines before a scheduled news event on 15 min zooming into the market


I make certain market assessments on the smaller time frames collecting data for possible reload entries.

What also needs to be considered that smaller time frames provide a more precise picture based on a higher degree of points where price touches the s/r zone

the following comparison also shows that the 60 min chart provides information the daily chart doesn't which is "when" price touches the s/r zone and that there is a pattern, hence smaller time frames provide more detailed data: daily:

versus 60 min:

the steeper a directional channel the harder to identify on larger time frames, as such at times smaller time frames are more useful for more precise trading channels:

60 min chart:

versus daily chart, where you can't even make out that there was a directional move over the last three days:


60 min chart with very precise channel with multiple touching points:

versus daily charts, where the channel can be made out much less obvious:

Another significant reason for various time frame s/r analysis is me typically when posting a chart trying in real-time to bring to the groups attention an upcoming high probability event like my last post about the S&P500 where I hinted towards the price breakdown:

and now:

Many more points could be made when, why and where it is useful to draw s/r lines but i hope the mentioned above shows some light on the reasons why I use various time frames for that.



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