Trends are valid only in the time frame in which they occur. Chart patterns on time frames larger and smaller than the current trend are independent. This interrelationship applies from 1-minute to yearly chart analysis.
This is why traders should always trade within various time frames. The most profitable positions will line up with support and resistance on the chart one amplitude above the trade and show low risk entry points on the chart one amplitude below.
The price evolves through bullish and bearish conflicts on all time frames. When ongoing trends are not running with specific chart periods, trade preparation can become subjective and dangerous.
The perfect opportunity to enter a trade rarely exists. An obvious breakout on a chart may face resistance in the longer-term view just above a planned entry level. Or a shorter-term chart may show so much volatility that any entry becomes a dangerous business.
Successful trading needs careful analysis of conflicting information to enter a trade only when the favorable odds increase to an acceptable level. If you are facing a good setup on a time frame but marginal conditions for those around you, use your experiences and skills to assess the overall risk. If the risk/reward ratio is in a tolerable range, consider execution even if all factors do not favor success.
However, chart information prioritizes chart length in parallel. For example, the important highs and lows on the weekly chart are more important than those on the 1 hour chart.
The earnings opportunity aligns with specific time frames. This trend relativity error often forces a new position just as the short-term swing turns sharply against the entry. Trend relativity errors also steal profits on good entries. Nobody wants to leave money on the table. The movement of natural waves can change the position sharply and send the trade to a substantial loss long before reaching a reward target.
Most traders should never change their holding period without detailed advance planning. Specific time frames require unique skills that each trader must master with experience.
Start with a sharp focus on the next direct move within a predetermined time frame. Prepare a written trading plan stating how long the position will be held and stick to it. Set a profit target for each promising setup and then reassess the landscape price must cross to get there. Consider the pure time element of trading. Decide how many bars must pass before a trade is abandoned, regardless of profit or loss.