Posted on June 24th, 2009 at 10:15 AM

Often times people will ask questions about time frame convergence in my trading. Usually the question is something like "the 5 minute says long but the 30 minute is a short.... how do you deal with this?". So I thought I would show you an example of how I combine time frames in some of my trades.

I put up a quick post earlier about Powershares DB Agriculture (DBA). Here I will show you the charts and what I was seeing.

Below is the 15 minute chart of DBA. There was a pretty clear Type 2 trade setup coming in on it. Now this is a counter trend trade. I think its relatively clear that the trend on the 15 was down and here I am looking to go long. Normally I am not a big counter trend trader but in situations where the bigger picture is looking good (in this case the daily) I like to try and sneak into that bigger picture on the smaller time frame.

 So there I have my entry into what I am expecting to be a nice continuation trade on the daily (see chart below). I will manage my stops on the 15 minute until I build a bit of profit and then switch over to working solely off the daily chart.

So now its just money management and I will see where this can lead.

Hope that is helpful.

Good Trading

Craig Russell

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