As a Professional Trading Coach, my first goal when working with new clients is to identify why they’re losing. Amazingly, many trader do not analyze multiple time frames before executing trades.
If they’re accustomed to trading the 1 minute chart, they may glance at the 2 or 5 minute charts. In order to get a big picture view of where the ticker in question is headed, I customarily review the daily time frames – 1 year and 3 year. In addition, it is important to know where the 50 and 200 day MA is in relation to current pricing as both can serve as major support and resistance.
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