One of the first things you learn in Technical Analysis is that markets are fractal.
That means that you’ll find the same human behaviors (i.e. price patterns) whether you’re looking at daily timeframes, weekly time frames or even intraday (e.g. 10-min or 30-min candles).
This is a concept that Brian Shannon has done an amazing job of highlighting throughout his career. Brian has been an inspiration to me since about 2005, which is pretty unbelievable to think about. Since then we’ve become friends and go skiing together and all that. It’s pretty cool how life works sometimes.
Anyway, the idea behind “Multiple Timeframes”, which is literally part of the title of Brian’s book (go buy it), is to use this reality of “markets being fractal” to our advantage.
That can mean a lot of different things to different people.
For us, in what we do here at All Star Charts is, we start with Weekly and Monthly time horizons. That’s where it all begins. [Read more…]