Hy, as a day trader model i like to know what is different timeframe to use in a top down analysis? which swit best for this strategy?
I would say there are as many answers to this question as there are daytrading strategies
It really depends on you circumstances (available time, etc) and the type of trading you are looking to do.
For example, if you are looking to spend a few hours in the evening in front of your screen and trading in/outs for a few pips then probably 4H/1H/15m timeframes would be sufficient. Some might even say the 4H/1H are unnecessary and the 15m/5m/1m are good enough.
Others who look to trade only 1 or 2 trades per day with an average duration of around 5-10 hours per trade might prefer 1D/4H/1H charts.
It never does any harm to watch the Daily chart to gain an overall “feel” for the current trend (or lack of).
A general principle would be that the 2/3 timeframes used are not too far apart that they have little relevance to each other. And neither should they be too close that they are telling you more or less the same thing.
I think it is worth being clear which timeframe is your “anchor” TF that provides your entry signals and then look at the higher TF to see how the potential trade fits the profile there, and also then to the lower TF for improving actual trade entry and fine-tuning the target and stoploss levels derived from the anchor chart.
But this is just the way I see it. I am sure there are many other views and approaches…
I typically go with the higher timeframes at first to find the overall trend then I zoom into the lower timeframes for entry points.
I follow daily trends and TF for 4H for levels & 14M for entries. What about you?
How about 1H?