We should have three timeframes. The trading timeframe and one higher and another lower. Aligning trend in all three time frames is not what we are trying to do.
The Higher Time Frame provides structure for our market by defining a framework of support and resistance which acts as barriers to our trading time frame framework.
The trading time frame is used to analyse the market trend and determine the likely path of future price action as it moves within the higher timeframe market structure.
Lower timeframe is used to fine tune the trading timeframe analysis and to time trade entry and exit.
These could be 60 min and 30 min, 3 min and 5 min, and 1 min respectively.
We trade the trading timeframe but do so by placing thee price action within the context of higher timeframe structure.
A trend in our trading timeframe may simply be a swing within a consolidation on the higher timeframe chart. A breakout on our trading timeframe may simply push us deeper into resistance on our higher timeframe chart.
Market Structure
Our Market structure principle operates in accordance with two principles
1 Price moves within a structural framework of Support and Resistance.
2 A breakout of the structural framework support or resistance will lead to movement within the next framework.
These areas define barriers to the trading timeframe trend. We’ve defined our battlefield, price moves back and forth within the framework defined by these levels. these are decision areas for price. The best SR levels are those where price moved rapidly away trapping traders.
