BUILDING A MARKET THESIS THROUGH MULTIPLE TIMEFRAMES.
You must, by all means, avoid the trap of being short-sighted by merely adhering to one chart analysis.
When completing your market structure investigations, it is all about creating a thesis regarding a specific direction by discovering congruence from the higher timeframes down to your trading timeframe.
We are not looking at one chart and making decisions based solely on what that particular timeframe is showing us.
We start from the higher timeframes, understand the bigger picture, establish what the market structure is communicating, and then work our way down.
As we move down the timeframes, we are looking for the same narrative to continue expressing itself.
That is where the congruence comes in.
If the higher timeframe is giving you a bullish structure, you want to see that bullish narrative being supported as you move down towards your trading timeframe.
You are essentially building a case for your direction.
The higher timeframes give you the context. The lower timeframes help you refine that thesis and identify the opportunity.
This is how you stop being short-sighted in your analysis.
Don’t just analyze a chart.
Build a thesis.
Start from the higher timeframe and work your way down until the market structure begins to align with your trading timeframe.
King Dan
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