I have a question about reading into different times frames
It’s been said that price is price is the same on all times frames. While this is true, price does create different visual queues on different time frames. As much as I’m trying to move away from indicators, I’m finding that I can’t get rid of stochastics.
I made a good trade today that netted 31 pips. I could have drawn more, but considering what I saw, I brought my stop loss down to 12 pips of where price was at, hoping to ride a bit longer. That didn’t last long and I was closed out for 31 pips.
Price is still moving down and I’d like to re-enter, but I sometimes take the position of the stochastics to help judge if a retrace, or even a complete turn around is coming.
On the H4 Stochs are high and everything looks good to grab another 30 pips.
on the H1 - M15, stochs are bottomed out. To me, I would think there are retraces coming on the H1 - M15. This leaves me confused as to if I should re-enter. If I simply use the H4 as my source of info, I’d re-enter short (and I did just re-enter and lost all my pips+ in like 3 minutes). If I took the lower time frames, I would wait until stochs where back into overbought. If I wasn’t using stochs, I’d still re-enter based on the H4, but I would become increasingly unsure the smaller the time frame I looked at.
I think you are on the right track and stochs are the only indicator i use
Someone once told me that where you enter the trade is how you make or lose money and i believe them.
Basically i think you have to identify what type of trader you are going to be, if you want to trade just off the 4hr or daily charts then you will have to increase your SL (i use a SL of 100 to 250 pips) for a longer term trade. so if your only looking to pickup 30 pips, you probably dont want to base your trade off the higher TF charts.
For a intra-day trade, I check the longer term trend just to get an idea of where it is most likely to go, then cycle throught the charts 1hr, 30min, 15 min and than finally use the 5 minute to zoom in and determine the entry point. So if the stochs are bottoming/topping out, i’ll wait for a small retracement and then enter.
The trend with in a trend so to speak, and the most important trend is the one on which time frame your going to trade.
I made a good trade today that netted 31 pips. I could have drawn more, but considering what I saw, I brought my stop loss down to 12 pips of where price was at, hoping to ride a bit longer.
I think you are not letting your trade run, if you were up 31 pips, i would have set the trade to B/E and just let it go, 12 pips is just too tight (i am assuming your not scalping) as your not giving it room to develop.