It's basically a way to operate between those who like to optimize entry and exit points, or those who do not want tied to a single period / temporary space (timeframe). It is time to combine 2 spaces, a long-term (or longer term) and a short-term (or shorter term). Some consider this method of operation as the most optimal for meeting the challenge of operating in financial markets, because they always try to find the best point of entry and exit of each transaction.
The combination of different time periods or spaces brings the best of both spaces, long and short. Avoid the rush to implement a transaction. It also avoids too late. In regard to the closing price, facilitates the exit of the transaction without giving much ground gained, almost impressed by best prices without using this technique.
These are the main strengths of this method of trading. but what about the weaknesses? Well, in my opinion, this way of operating presents few, if any exist, which could be directly related to its implementation. Someone could arguably say that combining 2 periods can cause temporary loss of a "trader" concentration on what is being done, because at some point in the operation, the short period (louder) will go in the opposite direction with respect to length. Although this may be true from a theoretical point of view, the reality shows us that when we combine 2 time periods, not only the short length does not interfere with the operation once it is already in progress, but also helps optimize the output of that operation. I would add that this is precisely the main objective of the combination of time periods: explore the different opportunities that the market gives us, by providing high credibility operations.
So why not use it most efficiently think that, somehow, a large number of traders in one way or another are using this method, but they realize it or want to admit. I definitely like every day there are more people using the combination. People realize how important it is to draw the "big picture" or at least a stage on which to work, and then have a period with which we can work on that scenario, providing the input and output necessary to operate. The key, important work is based on a combination of periods in which one feels secure and above all, comfortable, not to "sound better" or that "my friend is using." That does not work. Traders, thank God, are different, and therefore their preferences and feelings are unique. In addition, the combination you like the most, too. It is good therefore to forget what they both work and just focus on what one really cares, that is feeling comfortable and confident about what he does. Personally, I have 2 preferences very clear: the combination 4hr (long) with 15m (short) and the combination 60m (length) and 5m (short). Others commented that they are more comfortable with log (length) and 60m (short) and so a multitude of combinations, from which each has to find the one that will go well.
When combining different time periods, must be clear that absolutely nothing is changing its way of trading. By this I mean, the set of indicators you use to operate today, positioning you get through a formula should remain unchanged. Operational bases should remain the same. What is being done is to combine different time periods to improve the price of entry and exit, but the decision making process remains (and should remain) unchanged. Moreover, it is very possible that the combination of periods just to save some pennies by filtering operations which could have been negative / difficult, although it can also make some operations are not operating that were positive, but the result, in all cases, I personally think that it's worth it.
In the example you can see the graphics with some technical positions. Reflect information purposes only. Just pretend it is thought would happen to put the indicators or personal studies each (presenting a work environment). The important thing here is reinforced in the use of more than a combined period.
