Original subtitles

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.