All language subtitles for 5. Multiple time frames

Multiple timeframes. One of the most
powerful concepts within technical

is multiple timeframes, or in other
words, analyzing the chart in different

timeframes to align a trading idea.

Not all approaches can make use of this
concept, but the Wyckoff method can,

thanks to the universal applicability of
its principles.

The first and most important thing to be
clear on is that we can make use of

multiple timeframes or not.

It is optional and the trader must
decide themselves whether to use it.

There is no established rule, but this
principle is generally applied using two

or three different time frames.

A longer term one that would establish
the main context, another medium term

to carry out the most immediate analysis
and make decisions, and a shorter term

time frame to calibrate the management
of the position.

This slide shows an example of a
possible configuration depending on the

trader you decide to be, and therefore
the type of trading you will carry out.

I always say that the trading type that
we decide to undertake must be adapted

to our profile as a trader, and in this
case, to the time we have available to

dedicate to it.

If you cannot or do not want to spend
too much time trading, it's best to use

single time frame, usually the daily
chart.

This time frame is wide enough to
provide an adequate context of the

term and at the same time offers the
possibility of trading on a more

basis than if you were to only use the
weekly chart, for example.

This is what I do for my medium -long
-term trading shares analysis, trading

management on the daily chart.

If you can and want to spend more time
trading and decide to do so on hourly or

shorter charts, then you will have to
make use of multiple time frames and

this concept together with the
principles of the Wyckoff method.

This is a powerful combination, multiple
timeframes plus Wyckoff.

As I have mentioned, the first thing
that we must be clear about is

the general context and the trading
zones of the longer -term timeframe.

The key idea is that we will go down to
a lower timeframe right at the location

and the moment in which the price begins
to interact in the identified trading

zone.

Sometimes it will look for the entry
trigger.

but we will also do it if what we want
is to calibrate our position management.

Imagine that we are in a trading
situation in which we are assessing the

possibility of looking for a long
position.

We already know that our primary trading
positions occur in phases C, D, and E.

We will go down to a lower time frame to
look at the calibration of the entry

right when the price is in that
situation, for example.

Let's say we are in a potential spring,
phase C situation in the longer time

frame. Ideally, we would hope to see
signs in a smaller scale structure that

suggest the entry of buyers. On the one
hand, the macro structure would suggest

we are in a situation conducive to
trading, and at the same time we would

seeing a potential smaller scale
accumulation structure that, if

would act like the possible spring of
the larger structure, leaving us with an

extraordinary risk -reward ratio.

In this other example, if we are in a
potential break and retest situation

a bullish break and the analysis of the
signs confirm this, in that position, we

should expect the continuation of the
development of the structure.

Therefore, we would look for a smaller
scale reaccumulation structure as a test

on the broken structure, which will then
continue subsequently with the trend

movement out of range, as shown in the
example on the side.

Finally, if we are in the middle of a
bullish uptrend outside of range, we

expect to see the development of minor
reaccumulation structures to try to

position ourselves long in the direction
of the movement.

We don't know the momentum behind the
market movement and the imbalance in

of that direction may have a certain
urgency.

This urgency can generate the
development of rapid structures, and

we want to be.

This is the dynamic that we have to keep
in mind with regard to context

analysis, how smaller structures fit
into larger structures.

As we have seen in the previous
examples, it is not always necessary to

to a shorter time frame.

Most of the time, the minor structures
will be observed in the same way on the

upper time frame, although with a faster
development.

The key is to prioritize the development
of larger structures over smaller ones.

With this principle in mind, it is at
the discretion of each trader to decide

how short a time frame to go into.

Keep in mind that the lower you go, the
more noise you will see.

But we need to proceed with caution.

The fact that we are initially biased in
favor of one direction should not

undermine our objectivity when analyzing
that minor structure.

As we already know, we would be in a key
area, a liquidity zone.

which is likely to encourage the entry
of huge volume into the market in the

opposite direction.

Therefore, the potential spring
situation is, at the same time, a

bearish breakout.

The analysis of the larger structure may
suggest that up to now the buyers have

control. However, if during the
development of this minor structure we

observe these same signs, and by
contrast, we see the appearance of

sellers, it would not make sense to
continue predicting an accumulation

Instead, we should consider the bearish
scenario as likely.

This is the case in the following
example.

We are in a trading zone, potential
spring and potential breakout.

Initially, and if the signs in general
so suggest, we should predict the

development of an accumulation structure
since the previous trend was bullish.

But that does not mean that we should
not remain as objective as possible when

observing what is happening in the
market.

If, in this context, the price begins to
develop a minor structure that fails to

unbalance the market upwards and instead
develops a minor upthrust, we should

have enough capacity to cancel our
bullish scenario and assess the

of a distribution scenario occurring.

What's more, we may not have enough
capacity to take advantage of the

effect of this distribution because we
were too bullishly biased.

But at the very least, we should have
questioned the bullish scenario having

seen the failure of the bullish breakout
of the miner structure.

And this would have saved us from a
loss.

This is what is important.

The same situation can occur in the
other trading context that we have seen

previously. In this case, we are in a
potential bullish breakout situation,

which at the same time is also a
potential upthrust situation.

We see that the structure has developed,
offering us certain guarantees.

thanks to the development of the spring
and, automatically, the indication of

strength, so our directional bias will
continue to be bullish.

Once positioned above the structure,
right in the area where we are looking

the test after the breakout, it begins
to develop a minor structure, which

initially offer us an entry with a long
position in that small bearish breakout,

but which finally, after reaching the
previous highs, ends up as another

breakout. This should send the alarm
bells ringing.

This fact in itself should be enough for
us to abandon the position in the event

we have entered the market long, or at
least protect it or refine our stop

Subsequently, we see how it was a false
breakout and ends up as a minor

distribution structure, dependent on the
upthrust of the major structure, and

then leads to a bearish downturn.

Hence, the importance of having an open
mind and not being too rigid with

respect to directional biases.

You should also always have both long
and short scenarios prepared so that

the moment arrives, you can take
decisions quickly.