BTCUSDTBTC on weekly is under demand floor technically holding sellers ,they want to take profit to 79-80k zone ,why does higher time frame analysis matter?? higher time frame analysis generally holds a stronger bias for traders compared to lower time frames.
it Identifies the Main Trend and a "big picture" view of the market, helping traders determine the overall TREND of the market
Higher time frame Establishes clear Directional Bias: Higher time frames (hours, days, weeks) are essential for identifying the prevailing market conditions and bias (uptrend, downtrend, or flat).
higher time frame Signals Broader Market Sentiment: Price patterns forming on higher timeframes (daily, weekly) usually signal more significant market movements because they reflect broader market sentiment and involve more traders.
Informs Strategy and Directional Bias: Higher time frames don't dictate precise entries or targets but rather "paint the structural backdrop which informs strategy , directional bias and sentiment in a larger picture.
Higher time frame help you Avoids False Signals: Using higher time frames in conjunction with lower time frames can help you avoid false signals. Patterns on lower timeframes can be "noise" if they don't align with higher timeframe trends and sentiment.eg if you find a head and shoulder chart pattern in a lower time frame, that might not translate to overall sell on higher time frame .
While higher time frame analysis establishes the overall trend, lower time frames are used to Determine Entry and Exit Points. Smaller time frames show the short-term trend and help traders find good entry and exit points.
Pinpoint Precise Entries and Exits on Lower time frames (1-minute to 1-hour) enable traders to pinpoint precise entries, exits, and profit targets. my sniper entry strategy gives a smart point of entry which will helps lower stoploss exposure that can help a small account trade profitably in the direction of the market sentiment.
