At the beginning of my trading career, one of the questions I needed a precise answer to was pertinent to price charts time-frames, to be more specific:
- Which time-frame chart to use?
- How many charts do I need to reference to confirm my trade?
- How to use them together effectively?
The entire purpose of this document is to provide a framework and a rule of thumb for this issue, which is solely reliant on the trader's experience stemming from trial and errors and surely losses. So, whether you are an experienced trader, an algo developer or a newbie. This document will add to your knowledge-base. Any names given within this document are not carved in stone, its the concept that matters.
1.1 Normal View:
Let's start by agreeing on the concept, your normal view or the time-frame chart you normally use guarantees you only 50% of the "Big Picture" of the market, as shown in figure 1 below. The "Normal View" is your most important chart. It’s the one that provides the trading’s signals that tell you of any buying or selling opportunities. In other words, it’s the one you normally use with the respective trading time-frame.
1.2 High Definition V…