New Techniques  |  JAN 1999

Multiple Time Frame Trading Using Swing Channels by Robert Krausz, MH, BCHE

Multiple Time Frame Using Swing Robert Krausz, who was featured in Jack Schwager’s New Market Wizards, follows up his previous article on the new Gann swing chartist with a detailed presentation on using channels for setting up trading opportunities. In my previous article on dy-namic multiple time frames, I introduced one of my own ap-proaches to trading: The con-cept of multiple time frame trad-ing. The essence of the strategy is easy: Use the higher time frame price activity to define the trad-able trend as well as potential support and resistance levels. For example, if you are trading the Treasury bond futures contract and you follow the market using 50-minute bars, then look to the daily bar’s activity to indicate the trend and support and resistance levels. The same idea applies if you are trading a stock on a daily basis — say, Microsoft — in which case, the weekly bars will be the basis for the trend as well as the important support and resistance points. That is the foundation of multiple time frame trading. Besides the effectiveness of using a method based on a multiple time frame approach, another advan-tage is the method need not be complicated. A trader can make his or her method as simple or as compli-cated as desired. For me, though, the simpler the application, the better the results.

by Robert Krausz, MH, BCHE