A trader explains why he checks three timeframes before entering any trade: daily, 1-hour, and 5-minute charts all need to point the same direction. Today he's shorting because the daily and hourly charts are down, but he'll look for longs tomorrow if the bigger picture shifts.
Although I will not be personally trading this because it doesn't align with my system. Basically with my system I want to see all three time frames being aligned before I take any trades. In a sense, the daily chart is pointing towards the downside. I do not see upside yet. The one hourly chart in terms of order flow is also pointing towards the downside. And so on the five minute I'm going to focus on taking shorts instead of longs. So even if the market reverses today and start showing long signals, it is not too late to jump in tomorrow where I feel a fair retracement and a boom. Right? This will maybe be the high probability move of tomorrow, but just for today you're going to be leaning towards the short side.
