as a new and very novice trader, practiceing on my demo, I see a big difference in the timeframes
I generally look at 1m, 5m, 15m, 30m, can anyone of you good people tell me am I looking at too many or not enough timeframes, or should I be sticking to just one or two timeframes and if so which ones???
I would like to be able to place a trade before noon ( 9.00–10.00 ) and leave it until later that day and
check back to see is it up or down,
I know by not being there watching I could be loosing out, but at the moment I seem to be all over the place
getting different reading from different timeframes, someone please say something before I quit altogether,
Don’t quit. We all have that same question after the BP school; what next? They should sticky a reply thread to that question. If you look at the higher time frames, they give you a good indication as to the overall direction of the market. I’d start with a look at weekly and daily charts as a way to develop a bias. The 4h chart is the most under rated of the charts, as it has great lt and st qualities. For entries I usually look at a 1h chart. My entries are based on retracements, so if I am watching the market and I do have a strong opinion regarding bias, I occasionally will go to a 15m or 5m. Generally speaking, the evolution is that people start with timeframes that are way to short, and as they get better, it’s a result of getting in sync with the higher time frames. Some folks, down the road then use the lower TF’s for scalping.
There is no right or wrong answer and it depends on your strategy. In general I would avoid the M1 chart (I only use it to fine-tune entry points). Since you said you want to enter a trade before noon and wait all day you may want to check out the H1 chart for that.
You can use big time frames to identify the big picture such as whether the pair trending or going sideways. Then you can use smaller time frames to get better entries. This is what I am doing at the moment.
It is always easier to learn how to draw images in 2D than 3D, however 3D image usually looks nicer than a 2D image. Trading on single time-frame is like drawing a 2D image, while trading on multiple time-frame is like drawing a 3D image.
When I first started, I learn how to read the market just on a single time-frame(H1), I find it easier to learn how to determine whether the market is ranging or trending in a single time-frame. If one cannot handle a single time-frame how is he/she going to handle multiple time-frames?
After I am comfortable with a single time-frame, then I start to cross reference different time-frames. Like most traders who have commented earlier, I use higher time-frame (H4 or Daily) to determine the market direction and lower time-frame (M15 or H1) for entry and exits.
Normally I trade based on patterns in time frames 4 hours and above. That gives the big picture. I never look at any time frames below 1 hour. That keeps me as a day-swing trader.
Having not looked in on BP for several months I’m encouraged by the answers in this thread. Most experienced and or professional traders would agree that the longer TF’s yeild more predictable results. Personally, I wouldn’t venture below 4h. But its horses for courses. Time and experience will be the best indicator in your trading. Good hunting!
I generally stick to the daily TF. The edge you need to beat is significantly smaller than the 30M (and below) charts since the spread usually eats up a smaller % of your trade.