So I finished Elementary school in the school program, and I feel like a boss now lol, well I’ve been using the things I learned in demo and they seemed to work (was too scared to try in live)
I used the Stochastic & RSI indicators, and I shorted when the EUR/USD was above the 80 mark for Stoch and above 70 for RSI (value was 1.09960), then closed at 1.09080 so that’s around 90 pips.
But now I’m a bit confused because I was looking at the H4 chart, but when I switched to H1, M30, and M15 etc… the indicators showed a different sign. Same with most other indicators I tried.
So which is the best timeframe to follow in order to take home good profits?
I think that is something you need to test and try so you can see which one gives you better results. I think it is a bad idea that you skip from TF to TF, pick one and work on that. Different times frames at the same time will often give you a different signal.
You should the time frame that is best suited to you, not best suited to indicators. But if you don’t get good return using indicators on that time frame only then you need to change the time frame.
There is only one price. It means that we could say it is the same which time frame you use. On the other hand there are sub trend movements which may differ from a higher level time chart. That is why you saw that indicators showed a different sign.
If you see a sign on a M5 chart will have M5 chart consequences, while similar sign on a high level time chart will have similar consequences, which may occur across a longer period of time.
That is, the higher the time frame you find a signal, the greater the chance to move in that direction. Signals on higher time frame hold more value than the lower time frame ones.
Depends on what you feel comfortable with. If you have a day job and cannot trade during the day H4 is a very good timeframe for day/swing trading. Your trades have room to breathe.
Generally new traders trade lower TF. IMO its best to trade higher TF not as many swings back and forth.
Me personally I like the daily weekly then 1 hr. I dont usually go below 1 hr. But like has been said u have to find your comfort zone.
For me H4, H1 and M30 is good time frame that help me to find trends . I can easily know what was the market situation during this time so that future analysis become helpful for trading. More over our trading style determines what time frame suits us.
I use 4H D1 mainly, and 30M and 1H for entry confirmations. The higher the timeframe the more accurate the information providied will be. But The higher the timeframe also the less signals, but like I said, typically depending on how your trade, they are more reliable than the smaller timeframes. H4 I feel is a strong timeframe for most trading, good to get a idea of trend from the 4H for me and D1. Finish the babypip school here, and apply what you know on a DEMO account, never go live right from the start, give yourself a few months of screen time first at least demo-ing. Make a trading strategy after you finish the school here, and apply it on that demo account. Don’t give up right away on that strategy because it didn’t work right away, use it on DEMO for a few weeks at least and get a feel for it. I cannot stress how important the screen time is, for you to get your REAL experiance. Careful jumping strategys to much, it can and will confuse you and set you back. IT is fine to change strategys, just don’t do it every single day.
The higher TF you go, the more accurate every one of your tools is. Daily is the choice for me, but new traders especially are all about the quick money. Just know you won’t be getting the best of it that way.
Bigger charts are for long-term trading, 5m and 1m charts are for scalping. If you’re going to scalp markets (fix small profit or loss, less 100 pips) you should use small timeframes and vice versa
[I]"By many accounts, trading with a shorter-term approach is quite a bit more difficult to do profitably, and it often takes traders considerably longer to develop their strategy to actually find profitability.
There are quite a few reasons for this, but the shorter the term, the less information that goes into each and every candlestick. Variability increases the shorter our outlooks get because we’re adding the limiting factor of time.
There aren’t many successful scalpers that don’t know what to do on the longer-term charts; and in many cases, day-traders are using the longer-term charts to plot their shorter-term strategies.
All new traders should begin with a long-term approach; only getting shorter-term as they see success with a longer-term strategy. This way, as the margin of error increases with shorter-term charts and more volatile information, the trader can dynamically make adjustments to risk and trade management."[/I]
I use OandA, which has a 30 second chart, and have found that Stoch RSI 85 is great for entry. Here is the thing tho. I use a SamSung Galaxy tab which seems percise, but Oanda Java isnt exactly the same as my Tablet App.
Im a firm believer that if you scalping for 3-5 pips, entry is vital, and every chunk of the move is important,…
And, by the way, since Im on the subject, the Oanda App on the tablet is awesome. I can preset everything, as far a % risk per trade and % of usable leverage per trade. So, if i decide i want to make a trade, It literally take me 1/2 second to enter the trade. Not sure if you know my style, Im all in every trade. So i just set my Leverage % at 99, and my Risk % at 5%, so it automaticly adjusts my unit size, my SL, and my TP. I just hit Add tab-Submit tab, and Im in the trade, Its awesome…
I think there is no best time frame chart for trading because each time frame has its own function and if you can use it well then all time frame are important to use. For short-term traders, they will prefer to use low time frame as consideration in making decision to entry point and knowing tendency direction of price movement. Short-term traders prefer to use M1, M5, M15, M30 or H1 as combination time frame. For intraday traders, they prefer to use H1, H4 and D1 as consideration for making decision. And long-term traders prefer to use H4, D1, W1, and even MN as time frame.
I trade with my day job. I use daily time frame, its the best for swing trading. For H4, you still need to check market after every four hours, which can be troublesome at times.
Not much to say after many helpful replies. I am only repeating some of whats been said.
1-Longer time frames are more significant and give more reliable signals (Week,Day,4H)
2-If you scalp, then you ll stick to short TF, if you swing, Longer TF
3-The best time frame is what works best for you
here some more tips:
4-what works best for you today might change in time…adapt
5-shorter time frames means more effort, faster but smaller results/profits/loss
6-big time frame means less effort, slow but bigger results/profits/loss
7-it is also possible to use multiple time frames, big tf for trend detection and small tf for entries and exits
