Perfect channel in #GAEL!

Another reversal from the lower end of the channel this week.

Here’s your complete guide to...🧵

TRADING using MULTIPLE TIMEFRAMES (MTF) 📈

Most of the successful traders use MTF & just by knowing what’s happening in different TFs you increase your chances of winning.

Ok, so how can one use MTF to trade?

Let’s go...

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Rule 1⃣: Define your Trading/Investing Style

You can be a
➡️ Long term investor
➡️ Positional trader
➡️ Swing trader
➡️ Intraday trader

Let's take the example of a Positional trader for this 🧵

Rule 2⃣: Identify the LONG TERM TREND on Monthly charts!

The long term chart helps you identify the long term trend & pivotal points in trend changes

In the below #NEULAND chart, you can see the stock has been in a long term uptrend since 2001.

Rule3⃣: Wait for a BUY SIGNAL on the Weekly chart!

In this chart once you get a buy signal on CCI and RS, take a look at the chart and you will observe the change in trend and breakout.

Now you know this is probably a resumption of the long term trend that started in 2001.

Rule 4⃣: Now it is time to hit that 'BUY' button.

But how to IDENTIFY THE ENTRY POINT?

Switch to the 'Daily' chart & buy either on

➡️Retest of breakout zone
➡️Or on the breakout after a short consolidation after 3-5 days

Save this chart & look at it every time you have a stock which is going down, down & down!

Just 1⃣ single rule to save your capital👇

If you are beginner, never look at a stock when CCI below -100. Look at it only above 100.

Many more stocks will soon follow a similar pattern!

It took me 10+ years & more than 1000+ hours of practice…

to master these 5 IMPORTANT RULES WHILE DRAWING TRENDLINES 🎯

These simple rules, if mastered, can help one spot HIGH PROBABILITY TRADES!

Ready to learn?🤓

Let’s go🧵…

1⃣ Trendlines are zones and not a single line!

- Due to volatility in price, many times prices tend to spike on both sides
- So, consider trendlines as zones from multiple swing highs(include wicks) to get the best fit trendline
- Your winning probability increases with zones

2⃣ Trendlines with more touchpoints

- Any trendline with 3 or more touchpoints is a very significant one
- The price points around significant trendlines are important & should be watched

Observe the commentary in the Nifty chart below

3⃣Trendlines on higher Time Frame are more significant

- A trendline on the 15 min chart will be easily broken than a trendline on the daily
- A shorter time trendline break might just mean a consolidation phase before the price moves up again resuming the larger trend

4⃣ The steeper the trendline the more likely it will break

- The less steep the trendline angle, the more significant it is & more likely to be respected.
- Any trendline with an angle greater than 30° is steep & likely to be broken before the previous trend continues.