Multiple time frame analysis is simply technical analysis that involves carrying out analysis on a particular cryptocurrency asset on different time frames to get a clear understanding of the market direction and trends so as to make the best swing trading decisions. When doing multiple time frame analysis, the swing trader would monitor a particular cryptocurrency asset on different time frames, to understand the market trend over a particular time period.
Since swing trading involves holding a particular cryptocurrency asset for a period of time, like multiple days or weeks, multiple time frame analysis would involve doing analysis on that cryptocurrency asset on multiple time frames up to months to get a clearer understanding of the market trend. I will be doing multiple time frame analysis on ENJ/USDT pair, focusing on hourly, daily, weekly and monthly charts.
Monthly Chart - ENJ/USDT
When we look at the monthly chart of the ENJ/USDT pair, we can see that the market has been moving in an upward direction, the price has moved from $0.0489 to $2.5440. We have also seen an increase in volume since. The price broke above $2.5440 but immediately retraced back down below to the $1.66 price level.
.png)
Weekly Chart - ENJ/USDT
We can see from the weekly chart the different support and resistance price points. The market is in a correction, it has moved from uptrend to a downtrend. We can see the latest support level at $0.9222. There is a previous support at $1.9737 and resistance on $3.1143 and $2.6688. We have also seen a drop in the volume which shows that there is a decrease in interest in the market.
.png)
Daily Chart - ENJ/USDT
The daily chart shows that the market is moving in a downtrend. Looking at the 10EMA and the 20EMA, the 10EMA has crossed above the 20EMA which confirms the market in a downtrend. The price has moved from $3.4182 all the way down to 0.9393 and is correcting with a current price of $1.6678.
.png)
4 Hour Chart - ENJ/USDT
We can see from the 4 hour chart, we can see that the trend is taking a U turn and is moving in an uptrend direction. The price has moved from $0.8454 to $1.6435. We could see the price retest the resistance level at $1.9737 sooner than later. We can also see that the volume is picking up momentum, which is a good sign of increased market interest.
.png)
A friend of mine says that one way to better understand how price behaves, is to analyze various time frames, with your post it is clearer to me what he is referring to. Thanks @designieplay for sharing this kind of content.