Multi-Timeframe Analysis
Trading on a single timeframe is like driving with one eye closed. You need the full picture.
The Top-Down Approach
Always analyze from Higher Period to Lower Period.
| Timeframe | Purpose | What to Look For |
|---|---|---|
| Daily / 1 Hour | Trend Direction | Major Support/Resistance, Overall Trend (Up/Down). |
| 15 Minute | Intraday Setup | Patterns (Pennants, Flags), Day Structure. |
| 1 Minute / 5 Minute | Entry & Exit | Pinbars, Engulfing candles for precise entry triggers. |
The Golden Rule
Never trade against the Higher Timeframe Trend.
If the 15-minute chart is in a strong Downtrend, do not buy a Call just because you see a small green candle on the 1-minute chart. It's likely a trap. Wait for a "pullback" to resistance and Sell (Put).
Congratulations!
You have completed Module 3: Technical Analysis. You can now read charts like a pro.
Next, we will equip you with specialized tools in Module 4.
*Disclaimer: NSE/BSE frequently revise Lot Sizes and Expiry Days (e.g., SEBI Circulars 2024/2025). Always check the latest circular on nseindia.com before trading.
Standard Disclosure: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. The content provided here is for educational purposes only and does not constitute financial or investment advice. AlgoStraddle Academy is not a SEBI registered investment advisor. Trading options involves high risk and capital can be lost.