This week’s episode of Money Mondays kicks off our new education series where we will be focusing on specific trading topics related to how we trade and the concepts used by our community.
One of the first things traders must learn is the concept of MTF (Multiple Timeframes). Now let’s just get to the point…there is so much confusing topics about this on the web…Especially if you are an investor vs daytrader. We have a process to help you get started.
Step 1. Define your trader persona!Are you a shorter term trader or a longer term trader? This will define how you approach choosing the correct timeframes.
Step 2. Do you want to make things simple or complicated …I think we know the answer here…This is often not understood by new traders because everyone…makes things more complicated than they need to.
Let us explain:
Most traders pick a (HTF – Higher Timeframe), (MTF – Medium Timeframe) and (STF – Smaller Time Frame).
HTF – Macro Context
MTF – Intermediate Context
STF – Risk Execution
See, the problem lies in having to pick and make more decisions…traders already have enough to focus on, let’s not make it more complicated by adding too many decision charts…
On top of this, how can one possible identify the correct directional bias when trying to pick trends and ranges across 3 different timeframes…Its too condusions and counter-productive.
So how does NSTA do it?
We chose a HTF (Higher Timeframe) for macro context
We chose a STF (Smaller Time Frame) for micro context & risk execution.
On top of this, we don’t rely on HTF trends for directional bias. This is too confusing. Instead, we rely on Market and Volume Profile to tell us the direction of the Auction. This simplifies the confusion down to a rules based process and using the HTF chart becomes easy to read and understand.
All you need to do is learn how to read the HTF Profile chart, and make decisions on the STF risk chart. EASY as riding a bike …and well help take off the training wheels.
“Trading success requires you to have a good method and be a good trader in order to succeed…You can’t have one without the other and expect results!” – SK
Watch this week’s Money Monday (Trader TV Show) below to learn everything about Multiple Timeframes!