Trading with Multiple Time Frames -- with David Moadel
hey welcome to looking at the markets with David Modell I want to talk about
trading on multiple timeframes at least two maybe even more than two I don't
want you to go overboard okay you don't need to look at 27 different time frames
okay but maybe just looking at one time frame and then pulling back the chart
and looking at a second one can really help you to see the big picture because
sometimes when we look at the fine details we can we can be greedy or
fearful when we don't really need to be because we just need to step back a bit
look at a further out time frame and you'll see the big picture and it'll all
make a lot more sense to you and it'll help you to control your emotions as
well as to be a better technician in the markets all right so before I get
started if you want coaching for your trading or investing you can email me
for the coaching at David Modell at gmail.com I do help a lot of people
perhaps I could help you as well so yeah this is what it might look like let's
say you're working on a 15-minute candlestick chart I know these are not
candlesticks I wanted to get rid of the candlesticks and just represent them
with lines just to give you a big picture all right so let's say you're
working on the 15-minute chart and you know nothing that I've seen ever in the
markets just goes straight up or just goes straight down it's more like a
staircase or maybe a mountain range however you want to look at it okay and
so on the way up you're gonna get all these little head fakes okay something
could still be trending upwards and yet you get all these little head fakes and
with every little head fake some people unfortunately probably newer traders get
shaken out when they really don't need to get shaken out okay it's a fake out
and a shake out and you don't need to get shaked and baked okay
so if you're looking at the 15-minute candles or line chart whichever I also
recommend maybe also looking at a further out or bigger timeframe such as
the one hour or 60 60 minute chart and perhaps even also for an even bigger
picture reference frame you can also look at the 4-hour chart so you can look
at three different ones okay so I'm because even the the one hour
chart might still fake you out I mean this is clearly from here to here from
here to here it's an uptrend but on the way you get these little down moves that
can get you panicky or it could even stop you out if you have an automated
stop-loss in there you can get stopped out unnecessarily for a loss when the
trend is upwards okay and so over here you get even more on the 15-minute chart
you get even more you know people getting stopped out unnecessarily even
more head fakes even more shaken fakes alright so that doesn't have to be you
if you look at the 60-minute chart perhaps you can see that away it's still
training upwards here okay and then if you look at the four-hour candlestick or
line chart you can say oh you know this really is still trending upwards I have
no need to worry I've no need to get stopped out yet and that from here to
here it's trending downwards and so all these little up moves don't have to fake
you out either if you're taking a short position all right so just a thought so
let me show you how it works also in terms of candlesticks because those were
line charts so let's say you have two smaller candlesticks these could be
one-minute or whatever they are okay so if you have let's say this green candle
that means that the price started for this period here and then it ended here
okay and then let's say the next candle okay it started here because it ended
here last time so the next candle started here and then let's say it went
all the way down and ended here for that period okay so what happened it really
over the over this two candlestick timeframe it really started here and
ended here right because it started here went up and then went all the way down
here and ended here and so these two could be summed up in one candlestick
starting here and ending here and you know also going going all the way up
here and also going down here briefly at some point within these two candlesticks
and so this candlestick sums up these two and so if these are one-minute
candles this could be a two minute candle okay
or whatever if these are two 5-minute candles this could be a 10 minute candle
all right so this is just a representation of how one candle can
really sum up a couple of previous candles all right and so that's kind of
how it works and so I'll show you what that might look like in action I mean
this is SLV on tradingview calm okay the the silver ETF and if these are for our
candlesticks each candlestick representing four hours of price action
you might think oh the overall trend is down you might think man silver is not
doing well I I really should not get into it but wait a minute what if I were
to pull back the chart so to speak what if I were to use longer term a longer
timeframe candles sorry so these are the four hour candlesticks what if I just
took a quick look at the daily candlestick chart and oh my goodness it
paints a completely different picture we're really not looking at a long-term
downtrend okay yes it's been going down lately but overall the trend is still up
from here to here okay so there's no need to think that
silver is not doing well it's actually doing just fine maybe not short term but
longer-term it seems to be doing okay and so I might not even consider selling
my silver position or taking a short position when I look at multiple
timeframes and so what time frames can you use well as far as possible multiple
time frame combinations go and these are just possibilities so if you're looking
at the one-minute chart yeah you can also look at the 5-minute chart just
take a glance at it to get the bigger picture if you're looking at the
five-minute candlestick chart how about also look at the one-hour if you're
looking at the one hour chart primarily how about also looking at the four hour
candles if you mostly look at the for our for our candles maybe you're a swing
trader how about also looking at the daily the
one-day candles and if you're more long-term than if you're looking or our
swing trader as well if you're looking at the daily candlesticks the one day
candles how about also look at the weekly the one week candlesticks just to
give you that longer-term perspective the overall the more general the broader
trend again these are the suggestions try out different ones on whatever
platform you're using alright so I hope this was helpful I went through it kinda
quickly you can rewind this if you want to or need to as many times as you need
to all right I'll keep this video up there for as long as YouTube will allow
me to do so alright but if you want more help if you want a deeper fuller
explanation if you want personalized help to help you put together your
trading plan again you can email me further coaching at David Modell at
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thank you so much for watching and listening I'll talk to you again soon