Click on the chart to enlarge it.
As mentioned earlier, the probability of winning and expected profit potential both impact the initial trade-risk considerations. A higher probability of a winning trade—and therefore a lower probability that the required risk will actually be lost—should allow us to be more comfortable with a given level of risk.
When multiple timeframe Ocean analyses synchronize, as they did here (and many others that could be shown), the likelihood of a losing trade is greatly diminished. Thus the probability of trade success proportionately increases.
Likewise, when multiple timeframe Ocean analysis is utilized the identification of the trade is initially the result of a tradable Ocean formation on the highest timeframe under consideration. Lower timeframes may substantiate the trade and trigger an entry, but the profit potential of the trade is still generated from that highest timeframe.
Since the higher the timeframe the greater the profit potential, multiple timeframe analysis has the benefit of normally leading to greater profit potentials.
As you've probably noticed, many of the examples that we've used have begun with a Cross Kiss setup. We look for this formation because it's so powerful on even a single timeframe. But we don't stop there.
After that initial signal on a high timeframe we train a lens on that market and begin the process of analyzing it for supportive Ocean formations on lower timeframes.
(This is the end of Part 10. Go to Part 11.)
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