This is a very important question here…
The informations of each indicators are different at the very same time when you use different time frame so…
If the 5 minutes times frame “tell me” to buy, AND, at [U]the very same time[/U], the 1 hours time frame tell me (with stochastic for exemple) that the currency is [B]overbought[/B], what the hell should I do???
Please help me and so many other here!
Thanks!!!
you buy knowing that you must use ONLY the 5 minute timeframe for your support or resistance points.
the longer timeframe is telling you that the price is toppy while the 5 minute is simply telling you that ON THE 5 MINUTE, there is a small buying opportunity available, probably for a small amount of pips, and once you reach resistance, shall we say, you better get the heck out of the trade.
watching both the timeframes at the same time, WITH resistance lines of some type on them, will show you when the both are ready for getting out of.
of course, this precludes the price breaking out of the top of the longer timeframe, but even so it would normally retrace once it hits that top resistance before making another run at an attempted breakout.
CONSERVATIVE trading says take your small pippage and WAIT to see what happens next !
enjoy and trade well
mp
[B][I]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/I][/B]