HI, I’m a newbie. I have a question about Timeframes.
I observed that different TF’s have different values on each of them. Depending on the time duration, each TF registers price actions per bar from the point it opened till it closes.
I have heard from some traders advice that Higher TF’s are more powerful than lower TF’s that these Higher TF’s generally point the main trend while lower TF’s are just fragment that completes the Higher TF’s direction in the long run.
Question is which TF is most suited to determine a start of a new dominant trend?? must i look at first on the indicating values like MACD, Stochs, RSI, etc on Higher TF’s than lower timeframes? or must i use both signals lower and higher TF at the same time hoping to find a certain pattern or alike synchronization of a trend movement through indicator values?
i have a scenario here that if i try to look at higher TF indicating values, i find my trade positions at the middle of the trend and cuts me off having half the pips garnered out of it while if i try to look at lower TF gives me an early start of a possible trend and therefore i can place a trade at the start and not halfway…problem here are whipsaws/false signals. :eek:
I always look at 3 different timeframes…
the big one, to establish the direction of the main trend. Here i draw my support and resistance lines and fibonacci.
Then I look to a smaller timefrime, and i wait till it begins to replicate the main trend. I never trade against the trend.
Finally i look at a smaller timeframe to find the exact moment to put my order. Here is where i put my indicator, such as MACD, Oscillators, etc.
Ditto, except I start on the smallest timeframe and find the most recent support/resistance levels and then back out to the big picture and make sure that it still makes sense.
Generally, the longer the timeframe, the less likely you are to get faked out by false signals, which can commonly happen if you are using a 1 or 5 minute chart. Personally I use 15m, 4h, and daily charts, but it depends entirely on your trading strategy… I typically hold trades for days. So if you are a day trader you will probably want to go one or two levels lower.
