Hi guys
I’ve just recently started trading
And I always notice that on a longer timeframe (daily) it says one signal and on the other it says a different signal like (4 hours)
What exactly is this all about can someone please explain this to me
On the daily, each candle is what happened in a 24 hour period. 1 candle = 1 day
On the 4 hour each candle is what happened in a 4 hour period. candle = 4 hours so in the same 24 hour period, there would be 6 candles. So if you looked at a daily for the month of may, you would be getting a signal from 21 candles, that same period but on a 4 hour chart you would have 4 times as many candles 84 giving you a signal.
Go to the daily chart and draw a line on the second to last candle; you have information based on 2 candles, then drop down to a 4 hour chart and you should have information from 12 candles, do the same for an hour 48 candles. That’s one reason traders tell you to look at the candles in the time frame you’re trading. Some traders look at the daily to get a general idea of the trend, then drop down to the 4 to see if the 4 hour is going the same way in general as the daily and there are traders who will make entries, stop loss, take profit on the next lowest. I use to do that, but I found it’s better to use the information for the period you’re trading, assuming you’re using time based charts.
+1 on that. You need to develop your trading strategy based on one timeframe and not jump around between them. For example if you have developed your strategy based on the H1 and placed your entire set-up on that you should not care what H4, D1, M30 do etc. Your focus will be in the H1.
Thanks guys
This makes more sense to me now