Multiple Time Frames Analysis - Part 2
The 4 hour chart shows a simultaneous bearish pin bar. When two different next level time frames are simultaneously indicating the same thing, this is a good sign. We decide to enter 1 pip below the low of both the candles. Note that the entry comes very close to the weekend, which is uncomfortable and somewhat risky. We can lose more than our stop loss by leaving a position open over the weekend, especially a new position showing little or no profit. However, the argument can be made that there is also a reward for taking on this extra risk, as historical data shows that weekend gaps tend to occur in the direction of the trend.