I think that it is essential for short term traders to watch a market using multiple time frames. When watching a market – I call it “Seeing the Music of the Market” –I always use multiple time frames.

Music sounds different when it is played at different tempos – and the “Music of the Market” appears different when view in different time frames.

Over the years I have determined that three intra-day charts with time frames set at increasingly faster time frames works best – at least for my method of trading. The first chart I create is done by visual analysis – that is I construct the chart so I can see the music of the market – oscillations in price that may offer trading opportunities. The key is my SRVs – I want to see price oscillating between those SRVs – with sufficient amplitude to trade.

The second intra-day chart is set to about 1/5 to 1/10 the time frame of the first intra-day chart.

The third – and fastest – intra-day chart is set to about 1/5 to 1/10 the time frame of the second intra-day chart.

The decision of the actual time frame settings is also made by visual analysis – I want to see oscillations and technical indicators that present possible trading opportunities.

The visual analysis method I use is the subject of the eBook See the Music of the Market.

Once you learn to “See the Music of the Market” you are likely to become a better short term trader.

 

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See the Music of the Market

The unique trading method that is Trading Between the Lines