How I Trade Using Multiple Timeframes

Confluence on Three Time Frames Indicates Solid Short Set-Up

One of the topics I will be addressing in an upcoming segment of my ongoing FX Tutorials is combining multiple time frames looking for 'confluence' areas where the technical picture becomes very clear.

The charts below of CHF/JPY outline a very basic, yet effective, example of several resistance an support areas coming together at the same time that may well result in a solid short

Key Points:

- the 60-min chart finds resistance at a low from back on April 30th

- the 240-min chart has fib resistance at roughly the same area, 91.35

- the daily chart has failed at trend-line resistance and is now set to push below bull trend-lines (yellow highlighted area)

- momentum, as defined by the stochastics is bearish, although the 240-min chart exhibits a bit of upside price pressure