Analyzing multiple time frames in trading
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Case 1 – 30 Minute Timeframe:
Pidilite has recently broken its support (marked with black) and once support is broken the support becomes the new resistance.
Short Pidilite with the red line as a stop loss!
Case 2 – 1 Day Timeframe:
Pidilite is consolidating for a long time and it is in the potential reverse zone and already you can see a sign of strong reversal with a pin bar followed by a green candle after that day.
Long Pidilite with the red line as stop loss.
Smart Money will go with Case 2 where retailers will go with Case 1. Wait, Smart Money already went for Case 2!
What Should You do – Trade only when Case 1 and Case 2 both tell you to buy or sell at the same time. It will increase your survival.