It’s important when trading to view multiple time frames, and not just sit on a daily, 5 minute or a hour chart alone. This is most important when swing-trading, as what is support on the daily chart can sometimes be resistance on the weekly or  hourly chart. 

That means the ideal trade setups occurs when all the time frames match up perfectly. 

Case in point… Let’s take Internet Paper (IP). I want to look at the daily chart first…

Note the head and shoulders pattern on the daily and how around $34.60 you would confirm the pattern and  initiate the short trade at that point. 

But let’s see what is brewing on the weekly chart

It is a far different picture – a solid uptrend that doesn’t look the least bit bearish. But then why do I have those red arrows assuming that it is going down? That is because at $34.60 it breaks the downward trend, and thereby nullify the bullish trend on the weekly, and confirm the head and shoulders pattern the daily. This weekly chart also tells us that we don’t want to get short until we get a close below the $34.60 price level. Anything before then would increase the odds of being on the wrong side of the trade. 

Finally let’s look at the 30 minute chart…

Notice the beautiful bearish flag forming on IP and how there is multiple support levels at and around the $34.55-60 price level. Therefore this chart only enhances our belief that below $34.60 this is an ideal short level, but not at all before then.