Hello vijaim:
That is not an easy question to answer. I trade multiple time frames depending on what pattern surfaces/ the speed of the market. However, I tend to stick with lower time frame trades. I believe this is the safest way to trade and the easiest psychologically. I rarely hold a position overnight and never over the weekend. I only trade high volume pairs (EU, GU & occasionally the AU). I trade around news events, but do not play the news…this is gambling, in my opinion. Many times I am in a trade for less than 30 minutes, hit TP and I am done for the day.
As far as specific time frames…The software I use generates a self adjusting renko chart based on a year average of market price. I like renko because it takes the sideways price action out of your charts, emphasizes highs and lows. I find that renko wave patterns are much easier to read than traditional candlesticks. In FX…the simpler the better. My charts run off of a 24 hour server, so I can shut off my computer and my EAs still run. This also guards against internet and power outages and allows me to log on to my charts on any device quickly with no adjusting. I couldn’t operate any other way. Check out my trade screen:
This is a shot of the Euro dollar and the pound dollar. Many times they trade in tandem so it is helpful to view them simultaneously. The far left windows are where I enter all of my trades.
The middle charts are for waves of movement, supt/res areas, and larger scale entry patterns. The daily candles and supt/res help map things out further.
It looks complicated, but all I really do is wait until price is in a good area, at the right time.(no pending red news) and then wait for the correct wave entry pattern. There is no debating over a candle pattern with me. I just look for specific proven entry triggers. They are simple to read.
Here are the patterns I look for on my entry chart. They are all short entries…reverse them for longs
The ideal pattern… price action pullback buy/sell on the 2nd or 3rd wave…freakin money in the bank!
I believe the problem with trading only one time frame, is you tend to get tunnel vision if you can’t see the big picture. One time frame’s support is another time frame’s resistance.
It is really about learning how to view all of the evidence, put all the puzzle pieces together, then set your lines, turn your computer off, and have a normal life. I don’t stare at computer screens all day.
I only believe all of this because I have made every mistake in the book, liquidated accounts, stayed up all night in losing positions, but didn’t quit.
I want to spread the word to others, that success in this game is possible. Of my last 45 or so trades over a 2 month period…I have had roughly 12 break evens, but only 2 losses for a total of 36 pips. My goal is 50 pips or more per week trading at a 5.0 lot size or higher. My Lot size is not there yet, but am gaining ground and experience.
This game can be mastered, but you have to go through the process, there is no way to circumvent the process. Build the skill-set and then support it with proper habits and mindset. I didn’t understand this early on.
Any questions let me know.
Cheers!
