The big picture or why great looking setups in your trading timeframe sometimes inexplicably fail:
- Every time frame has its own structure.
- The higher time frames overrule the lower time frames.
- Prices in the lower time frame structure tend to respect the energy points of the higher time frame structure.
- The energy points of support/resistance created by the higher time frame's vibration (prices) can be validated by the action of lower time periods.
- The trend created by the next time period enables us to define the tradable trend.
- What appears to be chaos in one time period can be order in another time period.
Author Perry Kaufman, Trading Systems and Methods -Third Edition published by John Wiley & Sons