Multiple Timeframes Bootstrapping Technique

By Lawrence

StrategyPart of Art of Chart Reading

Being able to read your charts proficiently using multiple timeframes to improve your decision making is similar to graduating from secondary school (or middle school). After completing secondary school, you are supposed to have acquired all the basic knowledge of our world that is sufficient for you to handle your daily lives. Nonetheless, you are given the tools and whether you are going to apply the knowledge you have learned is up to you.

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Comments
  • mel December 11, 2013 at 7:07 am

    LC ! it just keep getting better and better…. feed me PLEASE !

  • mel December 11, 2013 at 7:09 am

    This X’mas LC I hope you can throw in chart examples and show how you fine tune the entries…. I have put up one sock 😉

  • Minty415 December 11, 2013 at 5:01 pm

    Thanks for these great articles LC. It would be great to visualize what you’re saying with some example charts. Looking forward to them.

  • MidKnight December 12, 2013 at 12:26 am

    Day trading HSI, I find waiting for confirmation often doesn’t exist until very late. There are so many Vs or times when the market makes extremely smooth and direct 1min chart moves without any wiggle in this market it is astounding. I have found waiting for confirmation a challenge with this market.

    • mel December 12, 2013 at 4:57 am

      How do you then decide to do your entry with the flow or trend? Some form of pullback?

    • Lawrence Chan December 12, 2013 at 12:02 pm

      The confirmed signals are the ones that we know there is positive expectancy within one timeframe. To be able to follow the principle without top/bottom picking you need the lower timeframe to assist you. In your case you probably need a fast cash index at resolution higher than 1 minute.

  • MidKnight December 12, 2013 at 2:17 am

    One more point about confirmation. If using price action confirmation (say a 1-2-3 as an example), on certain markets you will experience quite significant slippage. How would you try to mitigate that?

    • Lawrence Chan December 12, 2013 at 12:05 pm

      You can’t if you have only one timeframe to depend on.

      Of course you can add other tools into the mix if you are working with just one timeframe. e.g. STOPD levels, measured move projections, etc.
      That way even if you choose to pick top and bottom, you would gain a slight edge over those who do that blindly. BUT, once volatility kicks into high gear, this method will break down.

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