Hello,
How do you deal with conflicting signals of buy and sell on different time frames? I use EMA’s, Slow Stochastics (8,3), RSI(14) and usually look at the 15 min, 30 min, 1 hour and daily charts to confirm the trend and then enter.
My dilemmas is:
The longer time frames take longer time in giving signals of change in trend. By the time we start getting signals on the longer time frame, we have already half mssed the trend. If I look at the 1 hour chart and enter into a trade which I feel is trending up or down, the 15 min chart is showing just the reverse trend. In this case, should I go by the trend of 15 min chart or 1 hour chart?
Can some 1 hep resolve m dilemma?
Its always best to go with whatever bias you have on the larger time frame. So if base on the 1H you think price is going up then look for long entries on the 15m or 30m and vice-versa.
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Cadar has it right. Definitely keep an eye on the longer frame.
I use short time frames, but I’m always looking at longer ones for direction.
If I get a signal on a 5 minute chart that says sell, but the 1 hour has it going up overall, I’m looking for a t/p point at the last line of resistance, and bailing.
If the signal was a buy on the 5, and the 1 hour or 4 hour has price moving up as well, I’ll look to stay in the trade longer.
The direction/trend you might see in the shorter time frames, when opposite to that in the longer time frames, may persist for a while, but not for too long. The shorter the time frame, the short the time the trend will persist. Below 15m, I don’t believe much in finding trends, without any consideration of the higher time frames. So if you enter a trade based on a small time frame, expect to close it sooner, and don’t be surprised if it reverses on you.
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Thnx to all of you for replying. My next question is:
If the trend is up,(or so I believe) on a 1 hour chart but on smaller time frame there is some fluctuation happening against the 1 hour trend, you are saying that I should wait for the smaller time frame to also come to the same signal as the higher time frame trend and then enter. My question here is , if I am following the 1 hour trend and when I see the 15 min chart also coming to the same trend as shown in the 1 hour chart, should I wait for the 15 min candle to close before I enter into the trade?