A few days ago, I wanted to learn new trading and investing strategies. So I went online and I started exploring what other traders use in order to determine their entry in a trade and which mistakes to avoid. After watching and studying a couple of videos on Youtube, I already gained a significant amount of insight. I could not wait for the market to reopen and to test my new knowledge. That’s when I saw a video titled ‘Multiple Timeframe Analysis’. I was intrigued. Those three words seemed familiar and clear, but I could not imagine what it meant exactly. So, I took my pen and paper, and started watching videos concerning multiple timeframe analysis. The study went on for a few hours until I was finally satisfied with my understanding of the topic.
November 12th. The first day I was going to try out these new strategies. I wanted to find trades which I can hold for hours, days or even weeks. Naturally, I started screening stocks in order to find uptrends, bullish patterns, etc. I came up with quite a watchlist. At the end of the day, I hadn’t taken a single trade yet. But I had narrowed down my watchlist to just 2 stocks: RIOT (Nasdaq) and AWH (Nasdaq). Because this was a strategy test, I bought both stocks with fairly small amounts of money. The market closed, and I went to bed. I was confident and relaxed. I trusted my understanding of the multiple timeframe analysis strategy.
Today, November 13th, I woke up and had online classes to attend. During these classes, I kept one eye on my laptop and one on my monitor, which showed the charts of my watchlist. As soon as the pre-market opened, I started following what happened with the prices. I was baffled. Everything that happened with the price was predicted by my analysis from the day before. I couldn’t believe it. My two stocks were slowly but steadily climbing the ladder and showing signs of resistance where I predicted they would be.
Right before market close, I sold my RIOT stocks, but I kept AWH. I usually don’t hold stocks over the weekend, but this time, the faith I had in my analysis was stronger than ever. At the end of the day, I can say I am quite satisfied with todays gains from yesterdays entries.
I really enjoyed learning a new trading strategy and even more so testing it in the market. I will certainly be using multiple timeframe analysis on a daily base and keep sharing my gains and losses.
Thank you and as always,