The single biggest mistake retail traders make is trading in a vacuum. They look at a 5-minute chart and see a buy signal, completely ignoring that the daily chart is in a massive downtrend.
If you’ve spent any time in the markets, you know that a single chart rarely tells the whole story. To truly understand price action, you need to see the "big picture" and the "fine print" at the same time. This is the core philosophy behind Brian Shannon’s acclaimed book, Technical Analysis Using Multiple Timeframes . The single biggest mistake retail traders make is
: A specific timeframe he uses to divide the trading day into six equal periods. To truly understand price action, you need to
If the daily chart is making higher highs, your bias on the hourly chart should strictly be to look for buying opportunities. This eliminates the guessing game of "which way will the market go?" If the daily chart is making higher highs,
