If you look at the higher timeline for the trend (say daily), then why look at the hourly for entry/exit? The indicators on the hourly timeline are going to be telling you different things from the daily. Surely, the only thing you could take from the 2 is the pip counter level from the daily and transfer?
Any examples of a trade like above?
you probably wouldn’t look at the hour and the daily. The purpose of looking at higher time frames is to identify the overall trend. The will help filter trends from retraces.
So if you want to trade off the 15min, and think you have a possible short, if you look at the 4 hour and see that the trend is obviously going up you probably wouldn’t short it because the longer time frame conflicts with the shorter.
It’s just a method used to identify possible entries.
The shorter timframe shows the ocillation and the retraces within the higher time frame. By, looking at the shorter time frame you can get a better entry, that gets you closer to postive pips quicker.
For instance if you see price is an an uptrend on your large time frame, then you would look at the shorter time frame and maybe draw trend line or a channel. This would show you around where the retrace of the downward occilation is that would produce a better entry. Enter while price is a bit lower in the channel, instead of on the high end of the occillation only to loose a bunch of pips while it goes towards the retrace.
In my struggle to find a comfortable system. I am now looking into a Dr. Elder (Triple Screen) type of method where you look at a higher time frame for direction, then a lower time frame for entrance.
Currently I like to look at the Daily for the direction, then the hourly for my trade entries. Say the daily is on an uptrend, you would wait for the hourly to bottom out, then buy. But you do not try to call the bottom per se. Instead you would place a buy stop from the high of 2 candles ago once you think you are close to the bottom. The great part of this, is if the price moves against you, you move your buy stop down and you are still not live yet.
Right now my T/P and S/L are based on support and resistance via some of MP’s methods include BB, barry’s, previous day close/high/low etc, and tend to look at the H4 or Daily for this.