Hey hey, what's up my friend so in today's training is all about multiple time frame scripts. So here's what we'll talk about right. First thing: first, stack levels: how do you identify high probability market turning points right with deadly precision? Number two we'll talk about the rubberband effect. How do you avoid low quality trading setups right that mask themselves as high probability trading setups? This is something that fuller, many traders, because they think that oh, this particular trading setup looks bullish or it's a high probability trick.

But in fact, right, if you dig deeper, if you understand multiple time frame analysis, you realize that those setups are crap and you want to avoid it and number three how to improve your winning rate instantly by using this one simple technique. So all this and more right in today's training first thing: first, mistakes to avoid when using multiple type rig. Sorry, so the first mistake I want you to avoid is what I do this is that traders they zoom out their chats to little till it becomes. You know getting meaningless right, for example, let's say you trade off the five minutes timeframe and you use multiple time frame analysis.

You go up a higher time frame like the ten minutes. Time frame to me. That's useless! That's better irrelevant because on the 10 minutes and the five minutes time frame, you'll see that the information you get it's somewhat similar, you don't get any new information right just by going up from a five minutes to a 10 minutes time frame. So that's the first mistake right, you zoom out of your chats right, your runner.

You go up a higher time frame right, but it's not significant enough right to give you any new information for your own. Pretty number two, you zoom out too much. So this is where you overkill big. So, for example, let's say again you trade on the five minutes time frame and you zoom up to the muddly time frame.

That is overkill because, whatever happens on the monthly time frame, it's irrelevant right to a trader on the five minutes time frame. There is something like you know. Let's say you are at your house right, you order piece of land and you want to know mix Dora. What's your neighbor doing, something is noisy now there you're curious, but you're blocked by a fence.

So what do you do buy right right? You just pick a letter climb the letter. You can see what your neighbor is doing when you zoom out too much like that. It's like you know, going into space and look down and see what your neighbor is doing. That is overkill, and that's what I mean by you know zooming out too much.

So when you use multiple time frame analysis, there is a sweet spot to win. You cannot zoom out too little and at the same time you cannot assume out too much because it becomes overkill. So what is the sweet spot? Sorry, but before I get to that right this, if this is the first time you are watching my trading video right give me a thumbs up subscribe to my youtube channel. This way, whenever publish a new video, you always be updated, so do it right now hit subscribe and moving on.

The first secret is this: is that where you use multiple time frame analysis, you want to use a factor of 4 to 6. This is something that I believe I it's mentioned by Alexander elderoy, but Adam Grimes right. So this is a technique that I learned from them. So let's say for example, again, you are, let's say higher time between a factor of 4 to 6.

What do I mean by that is, for example, let's say we go with a factor of 4, let's say you're trading on the one hour time frame right, let's say you're trading on a one hour time frame, your higher time frame should be d4, our time frame. How do you get for our time frame just take a factor of four multiplied by this one hour you get forward time frame, okay, so let's try a factor of six. Let's say: you're trading time frame is the five minutes time frame Edie. What is your higher time frame if you are using a factor of six? You just pick six multiplied by five.

You get 30 minutes and the 30 minutes time frame is your higher time frame. Okay. So this is a very useful technique to use right to define right what is your higher time frame. So let me give you another quick one.

Let's say you're going with a factor of five. Okay and let's say you're trading type. Rib is the two hour time frame a factor of five. Your trading time frame is the two hour time frame.

So what is your higher time frame right? Do this quick exercise with me that should be your higher time frame should be a ten hour time frame. Okay, I hope you got that one right, so that's the first secret right whenever use multiple time frame analysis, whatever your to define your higher time frame. Remember this factor of four to six anywhere between four to six is fight or even three to five. It's perfectly fine, alright, don't get to eat about it right.

Okay, so just remember this. This range secret number, two or I expect levels right. So what is stick level. So let me ask you a question.

So let's say you don't Valentine's Day, I'm sure your wife, your girlfriend right, they they do appreciate a dear. Ideally they they want to be. You know, lift on the day, so there's a fastener. Let's see the second see now is this Valentine's Day again, but this time around Valentine's Day happen to be your wife's birthday and on top of it I is the same day right then, the two of you got married in other words, is your wedding anniversary? Don't let me ask you, which scenario is Valentine's Day most significant? Is it a first scenario where Valentine's Day is just Valentine's Day for everyone, or is it scenario to where Valentine's Day it's your wife's birthday and your wedding anniversary, which are is more significant? Well, probably, scenario: two right, because we have a multiple of a confluence of events coming together on that same day and day becomes more significant right, although I know the truth is because you you, you want to be a cheapskate in the water by too many gifts Or all or one day, that's that's a pretty smart idea right, but let's not let your wife know that.

But so you can agree that Valentine's Day in the second scenario, where we have a multiple confluence of events, makes that occasion much more meaningful, more significant, and why am i sharing this with you? Because this is the same as trading right? Let's say you identify a level on the daily timeframe. If that level right has a confluence offer, let's say, also a weekly level same level, it becomes more significant. Let me let me just explain to you what I mean by this right. Look at this chat over here, okay, so I would've looking over here right.

Why, right? Why did this market? Okay, let me just get out the tool right. Why did it reverse at this particular level? Well, some of you might look at this shut all radio! That's because there is an area of resistance over here, fair enough. There is the area of resistance over here we are which I draw over here - okay - also another one over here and over here. So what makes this one special well again remember multiple time frame analysis if I go up to the higher time frame, like the daily timeframe from the 4-hour to the dailies, a factor of six you can see on a higher time frame this particular level over here.

Okay, let me just point out this level that you have seen earlier on the forward time brief has a confluence of this one over here on the higher time frame, the higher year time frame, higher time frame and about here as well. So you can see that on the higher time for the daily time frame, this level is a significant level, so the 4-hour level has a confluence with the daily level and that becomes a stack level. So let me just you know, put this down side by side. So you can see where I'm coming from right.

Let me just split up the charts: okay, so daily type rate this portion over here - okay - so now you can see over here the daily time frame this level over here is the same level that you see over here. It's the same level. So now, do you see the significance of this this level now is no longer just a four hour time frame. Resistance is also a daily level right, a daily area of significance right.

So this is how you usually stack levels right where you are using your multiple time frame analysis if you identify a level there's a confluence of a higher time frame level and a same spot in the same area. That level becomes significant. Another example: okay: let's look at another example! Okay, so let's say we look at this this one over here now you look at this daily time frame. Okay, alright, no price! You may look at this! Oh, why did price reverse at this level? Maybe is because there is this swing.

This area of support over here get to be a one possibility right why the price reverse at this around this area. But again, if you use multiple time frame analysis, if you understand multiple time frame analysis, let's say we got before factor of five, the weekly time frame. You look up you notice at that level. It's actually a significant level or the higher title over here here here and here.

That's that once twice thrice four five, six seven and here in fact, so now this level no longer is just a daily time frame level. It's a level right that can also be seen on the weekly time frame. So my point here is this: right: when you are trading using multiple time frames, or you want to be aware of the levels that you have for each other areas of your chart, because those areas that has a confluence of a higher time frame, level or area As well, those levels are really the ones or you want to be trading off. Those are the ones right.

There has a higher probability of reversal make sense. Okay, so if I just gon na align this right side by side again, okay, so this one over here. Okay, it is the weekly time frame. You can see the weekly timeframe, and over here is the daily timeframe.

Weekly timeframe is this level here here and here which comes in to come close of this level here on the daily timer. So now this level of daily timeframe here becomes more significant. When you look at a big picture - and you realize man that level, it's actually a weekly level, that's why you know the price who reacted near that area. Okay, so that's the first thing that I know run is the second thing, the second secret day I wan na share with you.

I remember this Valentine's Day analogy. The third take the third secret, the rubberband stretch. So when you understand multiple time frame analysis right, you will know right when to buy and when to sell you don't want to be buying right when the price is far away from the area of value on the higher time frame. I know that sounds pretty.

Damn confusing, so let me just fire an example here to show you what I mean right. So if you look at this, this chat over here again. Alright, you look at this chart and they would think that man, I should be they look at this price breakdown of this swing low. Oh man, I should be selling right.

Look at this Rainer the market is in a downtrend, it just broke the swing low. The tree is about to continue. Let's sell, sell, sell to be honest right. This is what I used to do right until I found out the mistake that I did right and this mistake, this revelation came right only when I understand multiple time frame analysis.

So again, let's look at a big picture right so daily time frame we can use the weekly as our higher time frame right as a guide. So if you look at a weekly time frame, okay and let's identify the area of value of this chart, so I can do - is you don't use tools like trendline moving average whatsoever, whichever you you like right? So in this case I just go with trendline. Okay. Over here control C control V - and I realized I can't actually draw a channel.

So what you realize over here is that when you were selling only on a daily time frame, you were actually selling near the laws of this trend channel. Is this an area of value, if you think about this right, you know that the market has been contained in this trend channel. If you were to sell you wan na, be selling near the upper channel and possibly you're taking profits near the lowest right of this channel, you don't want to be selling at the lows of this channel, because that is possibly right now. What are the worst areas? Are you can look to shut the market but again right? You would know this right if you don't understand multiple time frame analysis.

So if we go back earlier to the daily time frame there you see over here, okay. So this is the the weekly time frame or the daily time frame. Then you see over here. Okay, I just put it side-by-side.

You can see that over here when you're selling at this point right is where you are selling here on the weekly timeframe near the lows of the trench and dealer right. We're buying pressure is what step it and push the price higher. So can you see this? This significance over here right when you understand multiple time frame analysis right. It gives you an x-ray vision.

It gives you a bird's eye view right of what you're doing at the markets right. Are you buy into it area of resistance? Are you selling it to an area of support, but this is important stuff. Let me give you one more example. This time we use a different tool to define your area of failure.

So if you look at the five year Treasury note, futures, okay over here, again same thing right, if you look at this shot, many traders they'll look at this all Rainer. Look at this Rainer, a higher lows. Higher highs market is an uptrend there's. This consolidation here Rader, let's buy the breakout, do you wan na? Do that? I hope, dawn right, because you want to see where you are in the grand scheme of things you want to know where you are in the big picture.

So, let's again use multiple time frame analysis. How can we do that? So this is a four hour time frame. I usually like to use a factor of six, so the higher time frame to me is the daily time frame. So let's look at the daily time frame and see where we are so earlier that point right where you are by you actually buy at this point over here at daily time.

You bite somewhere here about here and when you look at this right, do you want to be buying it? This highs on the TV time frame, because if you take a step back and you look right, you notice that the price tends to respect the 50 period. Moving average over here here here and you know that the 50 period moving average is an area of value for this market. So you clearly you'd want to be buying me at these signs, because if the market does a pullback, you likely get stopped on your boss. Probably gets knocked out so get less later chat site my son and see what you're actually doing on the forward time frame in a grand scheme of things: okay, so layout side by side.

So this one here is the daily time frame the forward time frame. Okay, you can see it's over here, so I lay out side by side. You see over here right. So what you did earlier is that, on a daily time frame you buy near this house over here, okay or the forward type rate is at this point over here.

So if, on the forward time frame, you're not aware of multiple time frame analysis or just blindly by right, there you'll probably get stopped out on this pullback this decline over here. But if you're a trader who is well versed with multiple time frame analysis, you might hold your horses, they might say: okay, I don't want to be buying at this Heinz, because the price now is overstretch away from the area of value. I might want to wind up wait for the price to come to my area of value, to come to me right before I look to enter three okay, so this is what multiple time frame analysis can do for you. When you understand you know how the big picture works so moving on secret number four, how do you actually improve your winning rate using multiple time frame? Analysis right, so the thing that I want you to pay attention to is look for, break off structure in the direction of the higher time frame print again, this one said that it's not clear right.

So this is why I like to give examples right to illustrate my my concept and often right traders might say here a little. You know why are you you're cherry-picking all this charge? You know you know all this all right. Okay, it's all on height side. Yes, it's all on hindsight and yes, I cherry-pick this chance to illustrate my concepts, but I'm not expecting you to blindly trade.

If I expand, you test verify the concepts that I share with you and whether it works or not. This is not the spoon feeding you and tell you, oh this, the way to do things right. You must read this way. No.

This is to open up your mind, your horizon, to be like water, my friend, and to see that there are different ways to create a market, different concepts, thereby resonate with you and if you think, you've resonates with you go apply it test it out and see. If it works for yourself right, don't just blindly take my word for it right. This is important and okay moving on break-up structure right. So let's have a look.

So if you look at this market right the pound year and on the daily timeframe, okay, daily timeframe, you notice that the price has come into this area of a resistance and you're wondering right, no off the traders with a trade suppose this does. They look for combat Candlestick patterns like shooting, star hammer, a gothic method, sword and so forth, and that is perfectly fine, but what if the bucket doesn't form this textbook patterns that you're familiar with? What, if you don't get this type of patterns? What do you you know just for good or trade? Just let it go no right, because if you understand multiple time frame analysis, you realize that you can actually time your entries without candlestick patterns. The only thing you need to do is understand market structure. It is really simple and I will explain to you how this works so again right on the powdery, and you see that price now is that this area of resistance right this was previous support, support which become resistance great.

So what's our entry trigger? How do you enter the trick? There is no, you know price rejection. There is no bearish engulfing pattern, blah blah blah. Let's assume there there is it right. So what you can do is again use multiple time frame analysis.

This time, bruh we go down to the four words, I'm afraid this is a factor of six and you see over here. There are the four words I'm afraid you have this, so this is how the four hour time frame looks like okay, if I overlay the chat side-by-side right, you get a see better so on the daily time frame. This is the level that we saw earlier. Okay on the forward side, it looks like this, and the break of structure is very simple at this point right.

You notice that there is a series of higher highs and higher lows coming it. This area of resistance right, higher lows, higher highs, pretty simple stuff, so break off structure means right. What you're looking for is a break of this prevailing price structure, you're looking for lower high and lower look, so where did that happen right? So the lower high and lower low occur at this point right at this point, even lower high and a lower low, where the price break below this low. You don't have a lower high and a low low, and this is what I call a break off structure and this is not an ordinary break off structure, because this is the break of structure and a key area or the daily timeframe.

In line with the overall trend or the higher time frame, which is the daily you saw earlier or the daily time, it's in a downtrend right, you see over here. This is the down trip. So this right, this break of structure technique right, allows you to better type your entries aligned right with the higher time frame thread align with the higher time frame. Resistors area make sense okay, so this is what I mean by a break off structure.

So, let's look at one more example: okay over here, this is a dollar against the dollar. Chrono reset shot quick one. Let's look at a daily timeframe, so get daily timeframe. You saw that up, or rather let's look at a weekly timeframe.

You saw that earlier. The weekly timeframe, price right is that this significant area, right previous resistance, become support. And again, let's say you don't have any price patterns to edit rate. What can you do about it? Well, if you use multiple time frequent balances, you can look for break of structure technique, so break down to a lower timeframe.

A factor of five is a daily you're. Now, looking for a break of structure, so you can see that the price keep down lower here and he bounds up that it pulls back where the price breaks above this high. What do you have over here, higher high at higher low right and on top of it, you're leading against this area of support on the weekly timeframe, and on top of it, you saw the earlier or the Hyatts. I break the weekly dive loop.

It's in that overall uptrend right, let me show you this overall up trade or the weekly timeframe. They have it. Okay, it's a weekly timeframe. This is the daily type free.

So can you see the significance of this break of structure technique using multiple time frame analysis? You don't have to rely on candlestick patterns right, don't have to rely on price rejections. If you understand multiple time frame analysis, you can go down to a lower timeframe to better time your entry and also another thing is this or the weekly type rewrite most traders? How do trade is late? Let's see, there's a higher close over here they will say their stop loss or, let's say below this lows or 180, are below it somewhere. Here it's a pretty it's a pretty decent stop-loss. But if you understand multiple time frame analysis, you can actually reduce the size of your stops, because now your stop loss can be based on the market structure on the lower timeframe.

Let me show you so the daily time frame now where the price broke. Above this highs, you can reference this new swing low. To set your stop-loss. Your stop-loss now is tighter.

A type of stop-loss offers you a more favorable risk to reward on your trade right. This is powerful stuff right. It is all because of you understanding, multiple time trip analysis. Okay, so with that said right, let's do a quick recap right: the board.

Will you want to use multiple time trips in your trading, write a dot, a factor of four to six, to define your high your time free number to remember the stack levels right when there's a confluence of where the level right is significant? Also on the higher time frame right, that level becomes even more significant right and it has a higher probability of reversal edit area now, but read don't buy when the price is over stretch on the higher time frame, where the price is far away from the area Of value and number four, it should increase your reading rate right trade, the break of structure in the direction of the higher time frame trip. Okay. So I hope this helps and if you want a lot more, if you enjoy today's trading right, I have this a complimentary trading guide for you go ahead download. It is free.

The ultimate guide to price action trading you'll learn how to better type your entries and exits, which are more support, resistance market structure and so much more so click this orange button right and I'll set it to your email for free and, if you've enjoyed today's trading, Give me a thumbs up subscribe to our youtube channel. The link is below and I will talk to you soon. You.