It follows from the above that the more chart elements (dots, candlesticks, bars) we observe at the same time, the more complete the picture, and therefore the more accurate the forecast.
And if we take into account that each element is formed at a certain time (time period, timeframe), then the question arises: which timeframe to choose to predict the price movement, for example, for tomorrow or next month?
To understand this, consider the following examples.
This example demonstrates a pronounced downward (bearish) trend. Since there are no visible signals to change (as the consequence of the second TA law states), it will continue.
It would be possible to be satisfied with the unambiguity of the forecast and start selling (Sell), but, as they say, there is a nuance. This is a chart of the H1 timeframe, i.e. each candle contains 1 hour of time. Having estimated the number of candles, it is easy to understand that we have a history of the last 4-5 days.
Isn’t this too little to justify the forecast?
Here’s what we’ll see on the graph, where TF = H4
Considering a longer period of history (the higher timeframe) gives more opportunities to confirm or refute the continuation of the trend existing on the lower timeframe.
Thus, in this case, there is every reason to predict a further trend change from bearish to bullish. By the way, now is a very good time to enter the market: as many as three (!) signals complement each other! Who goes where, and I go to the market!
That’s how switching timeframes is used in TA.