In this video, I give you intraday trading tips on using multiple timeframes to identify the support and resistance areas where price can turn. For example, yesterday I wrote about the potential upward movement on the Dow Jones.
In this video, I show you exactly how each of the timeframes identified where price would go to find support for the upward movement. That does not mean price moves straight up — instead it moves up (ADX is increasing and will be blue) then it makes a magenta peak (using the THD ADX indicator) and this signals the retracement and the Average True Range Stop identifies where price will pull back to for support.
As I mention in the intraday trading tips video, the most important area on the Dow Jones this morning has been the Congestion Dot on the 180 minute chart because it is serving as an area of resistance, preventing price from reaching the ATR stop on the 720 minute chart (has missed this area by about 80 points). Now, the issue is whether the 45 minute ATR gives support for the price to break the area of resistance that has formed on the 180 minute chart.
Using Multiple Timeframes Video
In the Intraday Trading Tips videos, I also show you what happens when the ADX indicator is oversold but no buyers come in. Quite simply, this is where price will make another move down, and then they will check for buyers again. For those of you that have the THD indicators, notice how the response from buyers actually comes in at the ATR stop on the 1440 minute chart.