Multi Time Frame Trading Strategy For Sure Profits

When I started trading with charts and started using trend following indicators like Super Trend etc, I have been whipsawed many times. In an intraday chart, many whipsaws are created and a trader can make a loss due to the whipsaw. So I did my research and found that we can minimize the whipsaw a lot if we can combine the intraday charts with the daily charts or end of day charts. This is called multi time frame trading strategy.

What is an end of day chart?

  • End of day chart is the chart got at the end of the day.
  • It is mainly derived after importing the Bhavcopy to Amibroker.
  • There are many companies who supply end of day data.
  • Some end of day charts can be seen on our site FREE CHARTS section.

What is intraday chart?

  • An intraday chart is the chart got real-time basis in the charting software.
  • It is mainly derived after connecting any real-time data utility to Amibroker.
  • There are many companies who supply real-time or RT data.
  • Intraday charts can be watched using charting software like Amibroker / Metatrader etc.
End Of Day Chart

EOD Chart Example

Intraday Chart

Intraday Chart Example

The Myth:

  • I trade only intraday
  • I don’t see EOD charts
  • I don’t bother about the daily trend
  • Trades are made on intraday charts only
  • Intraday traders need not check daily momentum indicators.
  • I have the most superior intraday trading technique that follows current timeframe only.

The myth unleashed:

  • A trend is created on the long-term chart.
  • One should not fight the long-term trend.
  • A proper combination of long-term trend and short-term trend, i.e, multi time frame trading strategy is to be taken for creating a right trading decision.
  • End of day trend plays a major role in the intraday trend.
  • If the daily trend is UP, intraday BUY will be more effective and if the daily trend is DOWN, intraday SELL will be more effective.

How to find EOD or daily trend?

  • Listening to TV – NOVICE
  • Using momentum indicators – PRO
  • Drawing trendlines – PRO
  • Using costly trend analysis software like RMO ATM, Advanced Get etc – PRO
  • Using TTTB Trading System – NOVICE as well as PRO

Components of TTTB

  • Peak and trough in the trend direction.
  • Bar color for the bias.
  • KRA line for trend effectivity.
  • Volume for trend intensity.

Once the daily trend is established:

  • Watch the intraday charts closely with:
  • Stochastics and RSI –PRO
  • Moving averages – PRO
  • Trendline breaks – PRO
  • Trend Blaster stop and reverse (or basic ATS) mode – NOVICE as well as PRO
  • Avoid signals against the daily trend and go for signals in favor of the daily trend.
  • Enjoy profit!!!

The Trading Thumb-Rule:

  • You need not be a PRO to win the game.
  • You only need to follow the PROs to win the game.
  • The trend is created by PROs.
  • The multi time frame trading strategy needs to be followed by smart traders.
Bank Nifty Daily Chart

Bank Nifty daily trend UP

Bank Nifty Intraday Chart

Bank Nifty Intra BUY Explodes

Daily + Intraday trading combo can be used on:

New researches:

Indrajit is a professional blogger and trading system developer. Amibroker expert, WordPress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.



Categories: Amibroker, Trading Strategy

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