On the Importance of Using Multiple Timeframes
This DOGEUSDT chart shows us the importance of using multiple timeframes when analysing a potential trade.
On the 15min chart, and the shortest timeframe, DOGE looks like a good long. It seems to have broken through a historical resistance at 0.26, and common wisdom would say that this has become a support.
However, when we move up the timeframe ladder, we see that this bullish case is not quite there yet. Resistance on the 75min chart is actually closer to 0.28, and even then there are heavy EMAs that will be weighing down on DOGE at those prices. From this perspective, a long here has a risk-reward of 0.13.
When we go back further one more timeframe, to the 375min charts, we see that there is almost no bullish case for DOGE. From 0.265, we have resistance up at 0.28, and then next support is around 0.17.
Using this kind of analysis, we can see that perhaps now is not the best time to be going long DOGE, even though on shorter timeframes it seems to have broken through certain resistances.
On the 15min chart, and the shortest timeframe, DOGE looks like a good long. It seems to have broken through a historical resistance at 0.26, and common wisdom would say that this has become a support.
However, when we move up the timeframe ladder, we see that this bullish case is not quite there yet. Resistance on the 75min chart is actually closer to 0.28, and even then there are heavy EMAs that will be weighing down on DOGE at those prices. From this perspective, a long here has a risk-reward of 0.13.
When we go back further one more timeframe, to the 375min charts, we see that there is almost no bullish case for DOGE. From 0.265, we have resistance up at 0.28, and then next support is around 0.17.
Using this kind of analysis, we can see that perhaps now is not the best time to be going long DOGE, even though on shorter timeframes it seems to have broken through certain resistances.