Hello all.
Ok i like to close most of my trades each evening- ive been experimenting with different time frames using these in all Stoch/RSI/MACD and Advanced ADX.
I have some success with 30min charts, changed to 1M charts and ended up trading more with more huge losses compared tos small gains…now looking at Daily Charts-
Question: Whats the difference here apart from my indicators change from chart timeframes to chart timeframe - should I be selling or buying as moving from one time frame on the same currency gives mix signals…should I be trading for 30mins on a 30min chart and scalping on a 1min chart as for the daily do I just hold the trade for 8 hours etc. Also with a daily chart should I be increasing my SL???
Just need help building this into my strategy.
Random market noise will effect indicates differently dependent on sample size… ie… in larger times frames the indicators include more data, appear smother, and show less signals, likely different interval because all indicators are lagging. The higher the time frame the greater latency of the signal. To much dependency on indicators can easily trap you into false moves or cause a trader to hesitate.
The reason you find more success with the 30min chart compared to the 1min is that you will see less market noise from candle to candle on the higher time frames. I personal prefer not to look at charts below 30mins. Price action in my option is more predictable around the 30min close, but give enough study you can find predictability on any time fame… My advice is stick with time frames you better understand and have had more success with… SL should be unique to the strategy and you should treat it differently on higher time frames. If you don’t change you SL for higher time frame entries you would need to be more selective about how the entries are taken. Example: Setup is be found on the a higher time frame but entry might be timed with a lower time frame price action to allow use with a smaller SL.
Hold times should be also unique to you own strategy and who you are sociologically as a Forex trader. Only hold a trade as long as you feel confident about the setup… once you lose confidence in your point of view its better to close the trade rather then loosing your nerve in the event you hold a trade under false pretenses and end up getting taken to the cleaners.
For me as I do not have time monitoring the chart, I would prefer to use the 4-hour chart. My trade signal comes when all my trade setup is met. Sometimes, I use the 1-hour chart to check the confirmation of my 4-hour trade setup and placing my SL and TP for fast trade. There is no magic formula on which time frame to use. It depends on what you want from this time frame and whether this time frame can give you the profitability in the long run. Just believe in yourself!