lesson 7 – timeframes

Welcome to lesson number 7!

This one is all about timeframes. Sounds boring? It isn´t!

Not a lot of traders pay attention to timeframes and their importance.

These are the ones I am using and paying attention to:

1) 15 min
2) 1 hr
3) 4 hr
4) 6 hr
5) 8 hr
6) 12 hr
7) 16 hr
8) Daily
9) 2 Day
10) Weekly
11) Monthly

Whenever you are preparing a new TA for example for a cryptocurrency, then start with the biggest
timeframe and make your way until the smallest ( 15 min ).

Q: Why?

A: The bigger the timeframe, the stronger he will dominate the chart. The smaller timeframes are
moving in between but always end up in following their next bigger timeframe.

The 15 min and 1 hr timeframes are mostly used for scalping and / or to enter into a 4 hr trend.

What does this mean and why do we say „4 hr trend“?

The 15 min and 1 hr timeframes do not dominate the chart. They are the smallest one and can not
built a real trend. That´s why we just use them for scalping / to find the best entries and even exits.

The 4 hr timeframe is the first timeframe that can built a trend.

If an asset is in an uptrend: Then this one will likely continue until the 4 hr shows the first signs of
weakness ( bearish divergences ) and if the 4 hr confirms them with a TC.

If an asset is in a downtrend: Then this one will likely continue until the 4 hr shows the first signs of
weakness ( bullish divergences ) and if the 4 hr confirms them with a TC.
So if the 4 hr chart is TC´d up after bullish divergences ( best situation ) then you can for example
entert he 4 hr trend on a 1 hr re-tc up ( the 1 hr agrees with the 4 hr trend again ).

The 6 hr and 8 hr are stronger than the 4 hr in building a trend, but they mostly go hand in hand with
the 4 hr timeframe. If the 4 hr shows some bearish divergences, the 6 hr and 8 hr will likely follow.

The 12 hr and 16 hr are stronger than the 6 hr and 8 hr. They usually don´t follow the 6 hr and 8 hr in
terms of divergences. That means: If you want to scalp into a bearish 6 hr and 8 hr trend ( while the
12 hr and 16 hr are still TC´d up or show no bearish divergences ), you have to prepare for 1 hr, 4 hr
and 6 hr re-tc ups into the 12 hr and 16 hr trend for trend continuation. So take profit accordingly (
fibonacci extension tool will be helpful with convergences ) and do not hold your trade forever.

Well, If the 12 hr and 16 hr agree in terms of divergences with the 6 hr and 8 hr, then you can expect
a stronger and longer trending phase.

The Daily and the 2D are stronger than the 12 hr and 16 hr. They usually don´t follow the 12 hr and
16 hr in terms of divergences. That means: If you want to scalp into a bearish 12 hr and 16 hr trend (
while the D and 2D are still TC´d up or show no bearish divergences ), you have to prepare for 8 hr,
12 hr and 16 hr re-tc ups into the D and 2D trend for trend continuation. So take profit accordingly (
fibonacci extension tool will be helpful with convergences ) and do not hold your trade forever.

Well, If the D and 2D agree in terms of divergences with the 12 hr and 16 hr, then you can expect a
stronger and longer trending phase.

The Weekly and Monthly are stronger than the D and 2D. They usually don´t follow the D and 2D in
terms of divergences. That means: If you want to scalp into a bearish D and 2D trend ( while the W
and M are still TC´d up or show no bearish divergences ), you have to prepare for 16 hr, D and 2D re-
tc ups into the W and M trend for trend continuation. So take profit accordingly ( fibonacci extension
tool will be helpful with convergences ) and do not hold your trade forever.

Well, If the W and M agree in terms of divergences with the D and 2D, then you can expect a
stronger and longer trending phase.

end of lesson 7 – Sincerely, Chris Goldstein