WEBVTT 00:02.770 --> 00:10.920 And this video, I'm going to talk about multiple time frame analysis, so when you're looking and trading 00:10.930 --> 00:19.600 a stock and this is especially true when you're talking about day trading, multiple time frame analysis 00:19.600 --> 00:22.300 is absolutely crucial. 00:22.990 --> 00:27.210 So the first thing you need to determine is what is the trend? 00:27.220 --> 00:35.260 In other words, is the market gradually going up like we see here on the Apple daily chart or. 00:36.160 --> 00:42.790 Is it gradually going down like we see here on the Deutsche Bank chart, you can see clearly over the 00:42.790 --> 00:49.030 course of the entirety of twenty eighteen so far, the market has certainly been selling Deutsche Bank. 00:49.690 --> 00:54.090 So that in and of itself gives you the overall bias. 00:54.640 --> 01:02.710 There's also something called consolidation, which you just simply timeframes of a cycle, if you will, 01:02.710 --> 01:05.210 where the stock really isn't going anywhere. 01:05.650 --> 01:10.510 So, for example, each one of these candles represents a day for a couple of months. 01:10.930 --> 01:12.820 Apple really didn't do anything. 01:13.030 --> 01:14.970 And that's called consolidation. 01:15.010 --> 01:16.510 This will dictate. 01:17.870 --> 01:22.490 Exactly how you approach a stock, if you will. 01:24.280 --> 01:30.610 One indicator that we will talk a lot about in this course is volume, you can click on indicators on 01:30.610 --> 01:34.360 the trading view platform and then go to volume. 01:34.360 --> 01:37.450 Just click on that and you're good to go. 01:37.450 --> 01:42.000 And you can see that the volume shows up at the bottom of the chart. 01:42.700 --> 01:44.200 It's color coded by the candle. 01:44.210 --> 01:46.240 So this was a green candle, for example. 01:46.240 --> 01:48.010 So that's a green bar. 01:48.550 --> 01:52.870 The higher a volume, the better off you're going to be, especially day trading. 01:53.290 --> 01:55.120 So watch what happens. 01:55.300 --> 01:57.370 This is an hourly chart of Apple. 01:58.170 --> 02:00.610 We go ahead and put that volume back on. 02:04.120 --> 02:09.800 You can see the volume lower, of course, because each one of these is an hour, not a day, but watch 02:09.800 --> 02:10.640 what happens. 02:11.300 --> 02:21.830 It shows on certain candlesticks much more volume, and then gives you an idea as to how the market 02:21.830 --> 02:28.670 participants truly participated in that particular candlestick, for example, gives you an idea of 02:29.030 --> 02:30.680 conviction, if you will. 02:33.390 --> 02:35.590 How to use multiple time frames? 02:35.610 --> 02:38.090 Well, that's essentially what we're looking at here. 02:38.100 --> 02:46.230 We're looking at a longer term uptrend and there is for those of you who know anything about patterns, 02:46.230 --> 02:48.620 there is a pennant forming, which is a bullish pattern. 02:49.140 --> 02:50.110 We're in an uptrend. 02:50.160 --> 02:55.740 So when you look to Apple on the short term charts and then this case, it's an hourly chart. 02:55.740 --> 03:00.660 It could be any time frame, 15 minutes, five minutes, whatever it is you're dealing with, you need 03:00.660 --> 03:07.080 to be looking for by signals, candlesticks that tell you, hey, it's time to get involved in hopefully 03:07.890 --> 03:11.800 with an extreme amount of volume as well that typically will lead the way. 03:12.060 --> 03:20.610 So now that we know what we want to do and which direction we want to take the chart, we then can ignore 03:21.360 --> 03:26.790 selling opportunities because we know that they are less likely to succeed over the longer term. 03:28.090 --> 03:36.400 When I mentioned previously that we were in an uptrend, then you start to look for signs perhaps like 03:36.400 --> 03:40.480 an inverted hammer here, that's a candlestick breaks to the upside. 03:40.780 --> 03:45.520 And once you break that, that's a good sign and you can see that we have gained from there. 03:45.520 --> 03:47.290 So that's just one example. 03:47.290 --> 03:51.970 And this is all based upon the fact that Apple has been rising over time. 03:52.750 --> 03:56.880 That means there's much more interest and much more volume to the upside. 03:56.890 --> 03:59.200 The larger institutions are getting involved. 03:59.680 --> 04:06.010 And therefore, even though it had been choppy for a couple of weeks, it's still over the longer term. 04:06.010 --> 04:10.870 On the early chart, as you can see, has paid to be long of Apple, not short. 04:11.110 --> 04:12.400 Here's a 15 minute chart. 04:12.400 --> 04:20.020 See, it looks pretty gruesome there, but when you start to fade out, it's a completely different 04:20.800 --> 04:21.410 scenario. 04:21.410 --> 04:27.820 And you can see that, again, even with these nasty pullbacks, it's still over the longer term, you 04:27.820 --> 04:31.210 continue to do better and remember to the upside. 04:31.210 --> 04:33.480 And remember, that's exactly what this is about. 04:33.490 --> 04:34.990 This is about playing the odds. 04:34.990 --> 04:35.980 You're never going to get it. 04:35.980 --> 04:36.610 All right. 04:37.060 --> 04:42.880 So as a quick example, before we cut out of this, you can see that there's a gap there. 04:42.880 --> 04:47.080 And when you blow through gaps, typically there's a lot of selling pressure there. 04:47.080 --> 04:50.020 And you can see that we did have a pretty negative move right there. 04:51.500 --> 04:55.350 When you return to the gap and you blow through it, that's a very bullish sign. 04:55.670 --> 05:02.000 So, for example, above two 24 might be a very interesting place to buy Apple because you have the 05:02.000 --> 05:04.130 weight of the market longer term with it. 05:04.460 --> 05:07.040 And it is a bullish technical signal. 05:07.280 --> 05:08.960 Again, though, volume helps. 05:09.290 --> 05:16.910 And I would urge you every morning before you start placing trades, look at the longer term charts 05:17.330 --> 05:24.200 and pay attention to whether we are with the trend or against the trend being against the trend. 05:24.200 --> 05:27.670 Really not a very smart thing to do. 05:28.690 --> 05:31.060 Deutsche Bank, as you can see, has broken down. 05:32.980 --> 05:40.180 Multiple times shooting star right into a gap, selling opportunity, but you could even go as far as 05:40.180 --> 05:46.600 going down to the one hour chart and start looking for selling opportunities at this point, if we blow 05:46.600 --> 05:48.480 through this gap, that would be a negative sign. 05:48.490 --> 05:50.840 Probably have short sellers coming into play. 05:51.250 --> 05:59.770 Now, I will point out volume is crucial on a multiple kinds of levels, not the least of which is getting 05:59.770 --> 06:00.880 in and out of the stock. 06:00.880 --> 06:07.420 As a day trader, you do not want something with a spread that's going to be five or 10 cent a less 06:07.420 --> 06:08.260 liquid stock. 06:08.260 --> 06:13.900 A day trader is going to want to be able to get in and out, not lose six ticks, trying to get filled. 06:14.470 --> 06:15.610 That's also important. 06:15.640 --> 06:21.940 So day traders tend to stick the larger stocks, such as Apple or the S.P.I or a JPMorgan, that type 06:21.940 --> 06:23.230 of stock. 06:23.740 --> 06:24.430 Stick around. 06:24.430 --> 06:27.790 We'll talk about support, resistance, trading strategies next.