Importance of multiple time frames in analysis

QUESTION: I have always been told the importance of looking at 3 time periods before placing a trade. As a novice swing trader, I have been told to identify my setups on a daily chart, use a 60 minute chart for timing the entry and a weekly chart to confirm support and resistance. You also mentioned this in your presentation. Can you explain exactly how the 60 minute chart identifies timing of entry into a trade. What is the danger of not using the 60 minute chart?

ANSWER: I agree completely with this. The danger of not using a 60 minute chart is that you can more easily get sucked into a position that is already quite extended on an intraday time frame. The 60 minute chart shows you where price action is in an intraday trend to avoid entering as often on an exhaustion move intraday. If you also have a base that is breaking out on a 60 minute time frame, then it will assist the swing trade and offer a higher probability setup, so this is another reason. You can also best assess pace or momentum and if the upside is more gradual than the downside within the range or flag or whatever you are trading, then you can tell that it has higher risk for a long setup and vice versa unless the pace shifts.