When a trader can look at the market from many different time frames he is becoming a better trader. If a trader only looks at the market from one time frame this will narrow his view of what the market is really doing. The bigger the picture of the market the better his chances of a successful trade are. For the position trader having the monthly, weekly, and daily time frames all lined up would be a big advantage. For the Swing trader having the 4-hour, and 1-hour, line up for an entry on the 15 or 30-minute would be a strong advantage as well.
We like to enter the market in the current moment but it is important to know the direction of the trend on a larger time frame. When a trader gets signals in several different time frames, the higher time frames for the direction and smaller time frames to time the entry it greatly increases ones chances for a success full trade.
A longer term traders should not make all their decisions based on the monthly, and weekly, charts and the short-term trader should not make all of their decisions using the 1- and 5-minute charts. In most cases the smaller time frames are used to time the entry on a trade and the larger time frames are used to determine the direction of the trend and to help stay in a winning trade longer.
It does not matter whether a trader goes for the long term or short term trades he needs to look at both the long and short time frames. When a signal appears on a larger time frame when you have entered in a smaller time frame, this is a good place to add on to the trade. And once a trade is being monitored in a larger time frame the smaller time frames will continue to give you entry signals. When a trade is going well then any entry signal will be a good add on signal no matter what the time frame. The more of the market a trader can see, the better he will be at trading, as he will get a clearer picture of what the market is doing.