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Top Down – Multiple Timeframe Trading Analysis Example
This discretionary price action article will run through a simple top down analysis scenario. The charts below show a theoretical trade setup using the daily chart to gain a bias and the lower timeframe to trigger a signal entry. The idea behind this kind of granular trading analysis is that the the stop loss can often be placed tighter than trading the daily candle alone, thus providing a greater theoretical risk to reward ratio. The reality may be that of a lower hit rate, but demo trading, along with extensive back testing, may reveal that this provides a better “expectancy” reading over time. Essentially, ... (full story)
