Im having a hard time understanding how to determine the right time frame to place my support and resistance. I understand we have to compare Lower to higher frames what hours would work best or how to find which one would be more accurate?
Longer time-frame charts have more power and accuracy than shorter time-frames. When you get down to less than 15 minutes the chart is just noise basically, and hard to take any meaningful TA such as support and resistance from.
But there is no precise answer. A longer time-frame trend will usually overwhelm shorter time-frame trends, but that does not mean they cannot make money for you - it’s just a higher level of risk.
In my opinion, the daily timeframe is good enough to project long-term trends, but I think it depends on the trading style. For example, intraday traders with short swing targets, the hourly timeframe is effective for market trend references. Usually, I will go to the M15 timeframe to find a more precise entry, this is also to determine stop loss and target by comparing support resistance on the hourly timeframe.
Why do we “have to” do that?
I don’t do that at all. I trade from a single chart-speed and don’t look at others. I know other people who trade profitably and use only one chart-speed, too.
Welcome to Babypips, @mp8967 , but do you mind telling us where your information came from?
The best way to find support and resistance is by using multiple time frames. I usually mark key levels on the 4H or Daily chart since those levels are stronger and more reliable. Then I go down to the 1H or 15m chart to find better entries. Higher time frames help me see the bigger picture, and lower ones help with timing the trade. Still practicing, but this method has been making things clearer for me.
Hmmm. Personally, I check the daily, 4H and 1H charts. And although I can’t really talk about their “accuracy” cause I think it also depends on how you interpret what you see, I feel like going to lower timeframes might be a bit more complex and challenging.
Simply, the longer the time frame, the more accurate the analysis! Which timeframe you choose is only about you I can only suggest do more than only one.
Why?
Why do so many people believe that using more than one is somehow better?
Does anyone actually have any evidence for this belief?