One of the ways you can dramatically improve your current trading results is to take into account what is happening on multiple time frames. If the set up you are looking at on one chart is also a set up on a longer time frame chart, then it is far more likely that the set up will work in your trading timeframe. The Bourse is ideally set up to deliver this information for a wide variety of shares using layouts and the SYNC feature.
If you are trading based on daily charts, a look at the weekly chart may show you something you did not see on a daily chart. You may want to buy a share based on the up trend you can see on a daily chart, but the market may be in a down trend on a weekly chart. This violates the key principle of trading in the direction of the trend and you were not even aware you were doing it. Also you could use an hourly chart to time your entries if you trade end of day. If you get a signal to buy on the daily chart, but a review of the hourly chart shows you that the share has had a strong run, then maybe you are better waiting until the next day to place your entry order.
Take a look at the charts below of BHP Billiton. BHP is in a down trend on the weekly chart and the daily chart, but when we look at the hourly chart in the bottom right hand corner, BHP is very oversold. It is a long way from the trend line and this means it is more likely to bounce back to the trend line than continue lower in the short term. An end of day trader would certainly not want to be selling short BHP today. An intraday trader could use the 5 min chart, on the top right, to enter the trade long when it breaks out of the down trend.
The Bourse can be set up to display multiple timeframes for the one share very easily using layouts.
To create a new view layout:
1. An easy way is to be in Classical MDI mode. You can do this from the “Window” menu. However, you can select one of the pre-formatted pane-mode layouts to start off with. Start by selecting a pane mode layout.
2. Select the “Window” menu, and select a view with 2 vertical panes indicated by this icon.
3. The screen will look like the screen shot below.
4. Click on the button with the two right arrows – we will call this the menu button.
This will drop down a menu. From here select “My Watch Lists.”
5. Repeat the same on the other side and select “Chart” and your screen will look like this:
6. Now size the windows to suit. Place the mouse pointer on the division between the two panes and move the division to the left to shrink the size of the Watch List and increase the size of the Chart.
7. Your final screen will look like this:
8. It is now recommended that you change to Classical MDI mode. This will restore the screen layout into normal “windows” mode and allow you to better control the window position. Do this by selecting the “Window” menu and clicking on “Classical MDI”. You will notice that the menu button has been replaced.
9. To make navigating through codes easier make sure that you have “SYNC: ON” in the status bar. To switch between sync modes just double-click on the SYNC status. With sync on you can select a code on the watch list and the chart will also change.
10. Most importantly, you now need to save your layout. Click on the “File” menu and select “Save”. You will be asked for a name for the layout. Click “OK” and the layout will be saved.
11. To reload your saved layouts use the “File” menu and select the “Open” menu item. Alternatively, if they have been opened recently, they will be pinned to the “File” menu.
Here is an example of the layout I use to look at multiple time frames. When you select Intraday for the charts you will be asked what time frame you want to display. Enter a value in minutes e.g. 60 for 1 hour candles. With this setup and SYNC ON I can click on any share in my watch list and it will be displayed in all time frames in the charts on the right.
By always considering multiple time frames when you make your trading decisions you can dramatically improve your trading results. Make sure the trade is set up in your favour on all charts, not just the time frame you are trading.
By Jeff Cartridge