You might want to avoid burning holes in your eyes observing, analysing & basing your conclusions on & around individual or small groups of candles/bars on micro timeframes.
Candles printing on sub hourly timeframes are merely ‘timing triggers’ at best.
The higher up the quality (timeframe) scale you go, the more time you’ll have to properly & better assess the psychology playing out at particular zones & levels on the ladder.
As has already been alluded to throughout this thread, the participants who really move the flows around on these instruments pay little or no attention to sub hourly timeframes as a reference point.
I’m not saying you can’t successfully integrate them into a profitable model, but you’ll get far more bang for your buck if your main structure & accompanying (technical) analysis is conducted via the slightly larger timeframe charts.
Basing the majority of your trading off micro timeframes with the sole intention of reducing & controlling risk is one of the biggest & most dangerous misnomers out there.
As you’re finding out to your (lost opportunity) cost, when price action butts up against increased volatility and/or periods of intense psychology, getting too close to the flames will burn your ass.
The only way you’re going to stay aboard these bucking bronco’s is to compromise.
That equates to giving your trades a little more room to not only develop, but also confirm that the current scenario still holds water.
That might require re-calibrating your position sizing to reflect a balanced risk/cost bias on your account or re-structure the way you arrive at your trade decisions.
I’ve copied this passage from Jimmy’s post (#781) on Sunday evening:
Most professional players will feed or compound into a run. So, at the point of entry (particularly if it’s some kind of breakout play), they’ll sling out a feeder stake to test the waters. If the price action pulls back & then plays out ok, & the move attracts decent participation, they’ll compound into it as it opens out (via pullbacks) until they aggregate their full exposure or positional % for that trade. That’s commonly known as “adding to a winner”
If you aim to work towards that principle when you get your account up to speed it will stand you in good stead across all trading conditions.
I’ve worked with a good number of professional traders & most pro’s that work their own money & actually use technical charts as part of their work sheet, avoid the (micro) gambling timeframes like the plague unless there’s a very good or clear reason to get dirty down there.
Generally there’s little or no value for them that far down the quality scale.
What does that tell you?
Tessa & Jocelyn have given quite a few examples of marrying up gambling (micro) triggers with higher, quality grade timeframe analysis. But don’t be fooled that they base their management structures around them.
Those two, along with their other siblings, have been exposed to this industry since they could first walk & talk. The firm we work for is run by their Parents & Uncles. Hauling that kind of experience around from an early age affords you plenty of options where trading money is concerned.
Point I’m making?
It might just pay dividends to steer a slightly different course to the majority of those folks who endorse laying your money down on these ridiculous systems and/or punting via short timeframe technical charts.
And on that note -
that’s me done with my babysitting duties. Jim is back in the saddle later tonight.
Nice to make your acquaintance. All the very best to you guys in your future endeavors. Take good care now,
Art Krantz.