A Pro's 5 Minute Trade SecretMultiple Time Frame Chart Analysis
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Why & How The Pro's 5 Minute Trade Secret Works
Because it is
- Simple to learn
- Easy to use
- It is quick to perform
- Substantially Raises you trades success probability
It involves monitoring the same market across different time frames.
Professionals use three (3) different periods, Monthly, Weekly, and Daily, because it allows a broad enough reading on the specific market to be very successful. Using fewer than 3 time frames can usually results in a lack of data while using more typically provides redundant analysis.
Now let’s look at the Monthly, Weekly, and Daily time frames in analysis.
The monthly level of a market is where the long-term trend is defined.
The monthly level distinguishes the dividing line between what we would call a bull or bear market. Swings from bullish to bearish are far less common and may take place perhaps once or twice over a multi-year period.
Look to the monthly level to determine if a long-term trend is still in motion or if there is some danger of making a significant change in the overall direction of the market.
A Monthly light change usually occurs after multi-day and multi-week directional changes.
The Weekly level of a market is where most portfolio analysis begins.
Large investment portfolios cannot move big positions back and forth for a minor reaction over the course of a few days. For this reason, the daily trend might turn bearish while the weekly trend could remain bullish or neutral.
Disagreements between levels merely suggest that a change in the longer-term trend is not confirmed. Matching conditions on the daily and weekly often can help indicate a coming change in both the long and short-term trends. You can use this to help your entry and exit points.t The weekly level can swing back and forth between bullish and bearish perhaps as many as four to twelve times per year.
A Weekly light change usually occurs after a multi-day confirmed directional change and before a monthly bullish or bear market signal.
The Daily trend of any market may swing from bullish to bearish and back again as many as 35 times a year.
Any market naturally oscillates back and forth regardless of its broader trend. Nothing moves straight up or down forever without making reactions along the way. Therefore, this indicator is intended for those interested in short-term trading patterns and higher volatility. A traders seeking to grow their investment at 100% or more per year will love The Evergreen Strategy because it is built precisely to work with A Pro’s 5-Minute Trade Secret.
A Daily light change must be weighed with the Monthly and Weekly prevailing trends.
Your Trades Likelihood Of Success
Performing the multiple time frame analysis encourages trading with a significantly higher probability that price action will eventually continue with the longer-term trend.
- If your a trader that likes to buy the dips then make sure the Monthly is green, and the weekly and daily are red. And as soon as the daily remains green, consider entry.
- If you are a day trader then you can use the daily and weekly charts and take long or short positions when both the weekly and daily are in agreement.
The confidence level in a trade should be measured by how the time frames line up. The more time frames are unified in direction, the higher the probability of profitable trades. Historically, when all three charts are unified in direction, probabilities for continuing in that direction rise rapidly.
Another example, if the larger monthly trend is under a green light along with the weekly consider taking bullish positions when the price pulls back on the daily level. This will let you enter positions at even better prices.
Alternatively, if the Monthly is bullish, but the weekly and daily charts have sustained a red arrows, a trader may want to set a tighter stop loss at the monthly chart level.
In fact, if you prefer to make money when the markets are rising, a 100% bullish system,with moderate trading, will appreciate The Evergreen Strategy.