Importance of Multi-Timeframe Analysis: USDCNH Long-term Channel

2021年4月14日

The importance of multi-time frame analysis cannot be over-emphasized. No matter the timeframe you are trading, it is important to always come out and see the bigger picture. In this example, USDCNH has been in a Bullish Ascending Channel since 2014

We can see that whenever price hit the trendline support, Institutional Buyers and Investors came in to buy in large Volumes. The key rule in all Financial Markets is to Buy Low and Sell High.

For this pair, USD/CNH, we also observe one important factor, Time!! Timing is a very important factor in all Human endeavor. Notice that for all three times, anytime price came to the trendline, it was almost always in January.

Why January? I don't really know. But it looks like when the trendline is close, the buyers liked to start their buying program at the beginning of the year.

If you are trader and you were selling in a lower timeframe like the 1-Hour chart during those three times, you may not know that you are close to a very big demand area, until the price starts shooting up.

There is no Coincidence in the Markets. All orders are planned!! whether buy or sell. the key is to look at the entire forest and not only the trees.

Last lesson: Trendlines and Channels may look simple but they are very powerful tools. They are a very great way to analyze markets. Never underestimate them.

Thanks folks and have a great Trading Day!!