As a trader, when looking at a market, it is always prudent to know the relativity of the time frame you are looking at visa vis others of higher time frames. The Multi-Time Period Charts Indicator is one of the best indicators that offers visualization of higher-time framed charts and how they are doing trend-wise.
The indicator offers a more straightforward way to evaluate whether your current timeframe’s price trend is moving with or against the overall trend of the underlying. By applying the principles of this indicator, traders are able to minimize trade risks and improve their odds of success by showing a bigger picture into the picture.
Features of Multi-Time Period Charts Indicator
- Uses multiple time periods for improved efficiency
- Uses the close price of the previous period
- Uses high and Low for the chosen period
- Uses an auto option that is selected automatically based on the chart timeframe
Calculations of Multi-Time Period Charts Indicator
Traders who use this indicator mainly apply three to four different time frames to identify the general trend and pick the appropriate entries. The selected periods are mostly distancing apart, e.g., if it’s a day trader who trades hourly, you might go for a weekly analysis which is the high time frame, a daily time frame which is seven times smaller, four hours, which is six times smaller, and an hourly time frame which is four times smaller.Multi-Time Period Charts Indicator | Indicator Series Click To Tweet
In the computation, the following values are considered:
- True range
- Trading range
- Heikin Ashi Range
- The true range is the close price of the previous period.
- The trading range is high and low for the chosen period.
- Heikin Ashi Range is the Heikin Ashi High and Heikin Ashi Low for the chosen period.
How the Multi-Time Period Charts Indicator works
As you monitor the price movements in the trade charts, it’s good to observe whether or not the trend depicted on the chart is in line with the more powerful longer-term chart trends. This can be achieved by observing the trends of the higher time frame charts characterized by red and green dots found on the lower side of the indicator chart. (Look at the historical prices of several stocks and trading assets on Tradinview’s charts).
Every line on the indicator represents a different higher time frame that is shown by a symbol that you pull on your chart. The Multi-Time Period Charts Indicator ensures that you can view the higher time frame chart trends and whether they are lined up for high probability moves or not.
How to trade with the Multi-Time Period Charts Indicator
The Multi-Time Period Charts Indicator’s main objective is to identify the overall trend in price. Regardless of the trade item, you are trading on, it will have price trends that surpass higher time frames down to the chart you may be interested in in a particular instance.
The higher the time frames, the stronger the trend on the lower time frames. As a trader, your interest should be the confluence of trends within the higher timeframes, which will allow you confirmation of direction or non-directional action. For more insight about trading, please subscribe to tradingview.com and join the conversation with other traders.