Part III. Some Rules and Advanced Talks. Some rules that will help you to deal with multiple time frames 1. Don’t use more than 3 (preferably 1-lower and 1-higher) and no less than 2 (preferably and 1-higher) time frames constantly in your day to day trading. 2. Here we assume that you’ve already decided what time frame is your favorite. If not, here are some selections for you (higher-preferable-lower): - Monthly, Weekly, Daily; - Weekly, Daily, Hourly; - Weekly, Daily, 4-hour; - Daily, hourly, 5-min or Daily, 4-hour, 30 min; - 4-hour, 30-min, 5-min or 4-hour, 1-hour, 5-min; - 30-min, 5-min, 1-min Personally, my preferred composition is Daily, hourly and 5-15 min charts. So, let’s take a look what the purpose of different time frames in this selection: For Daily-hourly-(5-15)-min selection: 3. All stuff at higher time frame is stronger than on the lower time frames – support, resistance, overbought, oversold etc…but simultaneously wider. 4. Despite whatever selection you trade – you have to look at monthly and weekly time frames. Ignore the trend, but pay attention to support/resistance levels, overbought/oversold and patterns; 5. The daily chart is the major chart for this selection, since it gives you the context – enter long, short or stay flat. Here is you have to pay attention to trend direction (buy or sell), support/resistance, overbought/oversold and patterns; 6. Hourly chart – your preferred time frame. Here you have to watch for the trend, but only as confirmation of entry levels, support/resistance levels, patterns and profit targets. Ignore oversold and overbought. 7. We use 5-15 min chart only for confirmation of particular entry points – ignore trend, support/resistance and oversold/overbought. Use patterns that confirm the entry point.