Different signals

why my charts show different signals guys.in my 1 hour time frame says its a buy but the 4 hour says its a sell.this wouldnt be a question for me cuz higher time frames are the big boys right.but my daily time frame from the same pair showed that its a buy.but i lost the trade.any reason or justification guys?:rolleyes:

Hi,

The strength of the strategy vary between different time frames. When you trade in daily time frame, time taken to close a candlestick is high which comprises of 24 candles in 1hr time frame. So strategy you used to Buy or Sell trades vary according to the time frames. Take RSI strategy, in 1hr time frame there is overbought in trading. So you want to Sell. But in daily time frames it moves between 30 to 70. You cannot take decision. Based on time frames, Target Price and Stop Loss level differs.

With the same strategy we cannot identify the trades whether it is Buy or Sell in different time frames. You could rely on different strategies of different time frames. Mostly signals are not accurate in lower time frames when compared to higher time frames because of volatility in Forex market. So strategy used in higher time frames consumes time to proceed.

-Jim

You should trade currencies that are giving the same signals in all timeframes for having successful trades.