say I’m bullish on a pair like EUR/USD by looking at the bigger timeframes
however once I get into a trade…
I always find it hard to ride along with my original plan…
I start seeing sell signals on the smaller timeframes…I almost want to trade against myself…
It’s like a buy signal on the daily chart, then you get a sell signal on the hourly chart…
Of course, the obvious wisdom would be hold on to the trade and let it ride out…
But, if I knew it was going to be sell…shouldn’t I countertrade and sell until I get a buy signal again on the smaller timeframe?
It’s similar to second guessing yourself, the problem is, what if you were wrong on your direction on the big timeframe, and eventually the small bearish signal turn into a huge downtrend
It’s a pain looking at so many different charts, on one chart you probably imagine how the trade is going to go in your favor, once you start looking at other charts, you start to have doubts…perhaps…maybe…
This is a really good question and very important. That’s why we need a proper trading plan with trading rules.
You should have a system to capture trading signals. It may be on higher time frames or smaller time frames. So once you found a trade, it is not necessary to worry about the trade go against you or in the winning direction.Stick to rules is the important thing. But you should have a exit plan to act in situations where you see a possible reversal on smaller time frames.
Interesting question. I have never thought about it as I took my time to develop a proper trading strategy which I can trust. I am still not 100% at that level, but for me there is no point to trade against myself. Having said that, for those who have a strategy and constantly record losses, they may be better off to simply take the other side than what their analysis states and achieve better results much faster rather than working on a new strategy.
Just because you trade both sides of swings a. doesn’t mean you’re betting against your self, or b. recording losses constantly. What it means is your analysis and trading is done on smaller time frames. Smaller time frames where trends and swings are faster and smaller.
I’m guessing you’re a swing or position trader. Op said he noticed after he entered a trade on longer time frames when he went down to smaller time frames he saw different signals. And asked if anyone trades different time frames
When you trade contrary to the major trend, you trade against the markets. When you trade against yourself, that means you don’t follow your trading rules.
Price doesn’t move in a straight line, right? So if EU is showing a strong bull-ish trend on the daily chart chances are at some point the upward move is going to slow down, stall and start to retrace. You might first notice the retracement on the shorter timeframes giving you a sell signal on the hourly.
One way to play it could be, when you see a strong buy signal on your daily chart instead of entering the trade, flip down to your hourly chart and wait for a buy signal on the hourly, in sync in the direction of the daily signal.
It’s a pretty standard multi-time-frame method. Use your longer timeframe, in this case the daily, for your trend bias. If your bias is long, flip down to a shorter (hourly) timeframe and go long dips & buy signals. If your bias is short, sell rallies & sell signals
Wise words from D-Pip… one more post D-Pip and its honorary member… long time coming and much deserved!
Couple of ways at looking at this as I see it? One, if your taking trades off the daily, stick with the daily. Fewer entries but you capture much larger moves and of course lower broker fees as you enter fewer trades. Two, if your time frame is the daily look to the 8h or 4h for counter moves against your longer daily position and exit until the 4h or 8h continues in line with the longer daily trend. As D-Pip quite rightly states Price Action is not linear.
That’s why you should trade on one time-frame and not jump around from time frame to time frame. I see nothing wrong with doing different time frames with different strategies in different accounts, but than you do it independently and still execute your strategy.
As a beginner, one has to learn not to overtrade. That was hard for me, too (and sometimes still is). You need rules and experience in order not to change your opinion all the time.
By the way: If you get a long signal on a higher TF and a short signal on a lower TF, [B]it could be a situation to go long[/B]. As trading is a zero sum market, all the loosers on the lower TF go against the traders on higher TF, place themselves at risk and only one can win. Read Jason Alan Janckovskys books!
HI, if I see a possibility to trade on the 1 hour chart I usually check the 1 Day chart to see the longer trend. If both trends have the same direction I may enter the deal. I want to be sure that I don’t trade against the market both in sort term and long term intervals.
And also - it is very usual to see your position losing right after you make it. It is the spread that makes your position automatically on a small loss.
You can intraday trades, as long as they are in the same direction as the predominant trend.
Counter trading on the other hand should be done on a small scale with strict lot size and risk management.
In the past I have though about this and do that,
but after margin call, I realize what is wrong not the trade,
but the money management, as soon as the money management corrected, the trade result in good result.
I learn lessons from trading against me. market is not in our favour all the time . it seldom runs as we want , other wise most of the traders pray in heart to get each pip. It happened as we put an order market movement is against us , So we are waiting and doing trading which is not in our benefit we have to manage at this time .
