Day trading help

Hi guys, hope you’re all well!

I am on practicing my Forex skills on demo and its going quite well, but it still hasn’t clicked completely with me.

I get caught up with what type of trading, what time frames and what lots suite me best as my free time differs quite a lot. I’ve decided to day trade as I prefer to analyse at nights and let my trade run through the day and am quite happy to leave them for the following day too. Due to going back to Uni soon this also suits me well.

One thing I struggle with is which timeframe I should be using to analyse, confirm, and enter the trade. Can some advice on this? Any help with regards to the above would be great.

note, I trade purely price action/trend, I don’t user indicators.

Thanks :slightly_smiling_face:

Sam

Hi,
It seems you are looking for swing trading (holding position for a few days).
As for me, this style is the most comfortable also.

About timeframes:
Daily (1D) chart to find out situation
5M to find pattern
1M to enter the trade

And, the most important: 1H to hold and cover position
(while using 5M you can close it too early. as I usually do)

Hi Sam!

What I might suggest is using the weekly, daily, 4H charts.

Use the weekly chart to determine the long term trend (bullish, bearish) so you know where the market is heading
Use the daily chart to find opportunities and to look for entry and exit points
Use the 4H chart to fine tune those entries and exit points

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Hi Sam,

Welcome to the forum! You preferred style of trading sounds similar to mine. Personally, I tend to scan for setups on the Daily chart four evenings a week (Sunday to Thursday), late at night (I’m UK). If I see what looks like a setup then I will look to gather some supporting data for my initial instinct. For instance, if I see on the Daily what looks like a reject of a level (to resume a trend, or perhaps a Reversal in a range), it could be crazy simply to trade that one piece of data. So I will look to the 4H chart, and see how that is looking. That might also be trending in the same direction, or might be rejecting the same level. I’ll also look in on the Hourly - that will have a lot more ‘noise’, but can show its own pattern. It might be looking as though Price is weakening back out of a level, which might lead me to think that my Daily setup doesn’t have strength behind it. I will also have RSI on each of those charts, and preferably be seeing strength behind what I want to be doing. I’ll also throw a few Fib levels on there, and it is often amazing how suddenly sometimes you get a clear level emerging - which can either support or argue against your initial idea. I’d also look to the Weekly (and sometimes Monthly) just to check that we aren’t moving into a point which entirely invalidates my current idea. Remember - the trend is your friend until the bend at the end!

Basically, my charts start out naked, or with a few levels of S&R drawn on. Then when I see a Daily setup within that I start layering up my other factor, hoping that they will continue to support my strongest instinct. If I don’t get at least four factors on my side then I simply won’t take the setup. There is always another one - I don’t want to be in any more than five trades with untrailed Stops at any one time, in any case.

Personally I wouldn’t look down as low as the 5 or 1 minute chart for an EOD trade, I use the 5 minute for my Intraday trading. I tend only to look a couple of TFs to either side of the TF from which I want to enter the trade. Then monitor the trade at that same interval.

But this is a very big area, and there are many different approaches which have worked. So find the one you like, but be sure to do it consistently, using a bunch of factors which make sense together when taken in the context of your style. And remember that each TF is really just a different window through which we look at the same thing. So if you aren’t getting a consistent picture walk away.

Hope that helps & is not patronising - it is not intended to be!

ST

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