The Golden Rules of Trend Trading: The Art of Coordinating Large and Small Time Frames
1. Large Time Frame Sets the Direction, Small Time Frame Finds Opportunities
Large Time Frame is Your Navigator (Daily/Weekly):
Identify Trends: Instantly recognize a Bull Market, Bear Market, or Sideways Market, resolving the soul-searching question of "Should I take action?"
Find Key Levels: Lock in those support and resistance levels that make prices "irresistible"; these areas are where significant market movements are likely to occur.
Small Time Frame is Your Sniper Scope (4-Hour/15-Minute):
Wait for the Right Moment: Find the best entry points within the larger trend, just like waiting for a bus, no need to chase after it.
Set Defense Lines: Draw your stop-loss lines in advance; know how much you’re willing to lose clearly, and earn confidently.
2. The Four Great Secrets of Time Frame Interaction
Suppression Effect:
When the small time frame hits a high point in the large time frame, it’s like hitting a ceiling; chasing the rise? Be careful not to get knocked out!
Breakthrough Effect:
When the small time frame violently breaks through key levels of the large time frame, it’s like opening up vital energy channels; the trend may take off.
Support Effect:
When the larger trend is upward, if the small time frame pulls back to the large time frame's support level, it’s like jumping on a trampoline; it can often bounce back even higher.
Characteristics of a Healthy Trend:
A truly good trend will have a harmonious coordination between large and small time frames - higher highs and higher lows, like climbing stairs, one step at a time.
Practical Trading Philosophy:
Look at the big picture while making small trades; wait for small confirmations of the big trend. The large time frame tells you where to go, and the small time frame tells you when to step. Remember, the market is always playing psychological games with you, and the large and small time frames are your secret weapons.#BTC #ETH
