Quote:
Originally Posted by PipsiCola
Is there any clear advantage to using a 5min chart as your short-term chart? It seems to me that 5min could introduce a huge amount of noise on the charts.
Any thoughts about using the 15mins instead of the 5?
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Hello PipsiCola,
Good question, it's great to see traders thinking outside of the box!
Will there be a clear advantage? I would'nt think so, but I havent tried it with the 15m chart as my smallest time-frame, maybe you could and see if your results differ. If you follow the "rules" and allow prices to cross the MA on the 5 min chart and also get above the previous high (2 candles to the left with lower value & 2 candles to the right with lower value) I think this will help you filter a lot of the noise. Another point, after you use this system or guide as I like to call it, you get a feel for the currency pair, therefore if you suspect the pair is in a tight choppy range - simple chose another pair to trade the system on or dont trade until things become clearer. Here is a real example for you: yesterday afternoon (19th of September '07 GMT) the eur/usd was in a choppy range, I choose not to trade Eur/Usd yesterday afternoon as I was not getting a clear signal. BTW I would have been looking for buying oppertunities, its has now gone up over 100 pips. What I did instead was look at the Usd/Jpy - all 3 duck's where lined up in the same direction and I got a break above the last high on the 5min chart for confirmation. The trade was successful. So I think to get the best out of the system you need to get some experience using in in a live market, (demo account) get the feel for it and make it your own.
Sorry for such a long post, but I think a good explanation is required for PipsiCola's initial question.
Kind Regards,
Captain Currency