Home » Candlestick Charts » Daily 2-Minute Chart Study #435: Looking At Long-Term Monthly Charts Is Great Practice

Bigger time frames tend to win whenever there is a conflict between bigger and smaller time frame charts.

Big drops come from somewhere so make sure to account to all time frames – and more so the the big muscle bigger time frames of the monthly and weekly chart.

30.9 drop is a big issue plus failure to observe a previous uniformity support line on the daily chart.

We also look at uniform activity rejection at the RSI 50 level. Bang!

“RSI 50 Level Uniform Support or Rejection”


Stock Charts RSI 30 Level & RSI 70 Level Explained

RSI backtest failure and the uniformity line from a previous major high seem to be the hidden – yet powerful – reasons why the monthly chart stalled and is not reacting negatively.

We revisit the idea of always confirming any technical thesis with what the longer term charts are saying. We can always use the small time frames for precise timing but only after fully considering the big picture.

Most traders never consider the weekly and monthly charts which is a mistake. There is also a need to longer the long long long visual behavior by also going back and analysis years and years of historical chart data since more often that note any trading instrument is still trading in the context of it historical data.

When traders nowadays only seem to be obsessed with hourly and minute charts they tend to “surprised” when nothing seems to work according to the small time frames.

The cause for this can as simple as failure to consider the big picture.

We take a look at what to do when smaller time frames contradict bigger time frames.

What we discuss is that if the bigger time frames remain valid from a technical stand point then the smaller time frames will eventually correct themselves and align themselves with the bigger time frames.

At the same time it’s also common for smaller time frames to turn then they change the look and feel of bigger time frames. So, we cant ignore the smaller time frame either.

The dance between bigger and smaller time frames will always be there and it’s our job to make sense of all these confusing confusing signals.

When in doubt, do nothing!

Blind spot or blind side

Mast Therapeutics Inc

Protalix BioTcs Rg

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