If a trade is valid on the H4, do NOT look at the Daily for nada! Fully manage that trade from the H4
If you start looking at D1 trend in order determine what the H4 is doing, you’ll only develop BIAS, and you’ll fall into a trap
The absolute best thing to do is to mark S/Rs from D1 (or W1) and then look for Hx trades from those S/Rs. That’s the BEST way to makes use of the TFs together.
I been using a 100 or 200 EMA to see if trend is up or down (if price is above EMA then trend is long, if price is below EMA then trend is short) do you use other method or have a different one?
Esteban
[B]#2[/B]
Yes, our eyes ( I’m not being c[o]cky ). Dude, EMAs (and all the others) are LAGGING. By the time the trend has changed, the EMA will still be telling you to take trades in the opposite direction ( --> again, BIAS !! )
Strip the EMAs off your chart, and let your eyes and mind start [B]seeing[/B] the flow of price. And when you do (with just a bit of chart time ), you’ll never ever need the EMAs again…
Hi everyone.
I’m follow this thread, since some months, mastering price action and doing my best to keep my head out of the water.
I already read many many pages on this thread, and i have one question to everyone willing to give me an answer( sure i missed the part of the thread talking about that or maybe not ).
i see some of you taking signals on H4 and Daily timeframe, using Supports and resistances on daily and weekly. This seems to be the common way of using price action, and that what i learned on a paid price action course.
But i also see trades taken based on timeframes like H8, H6, H12, etc. I know that according to price action, the price movements meaning can be decrypted no matter the timeframe, because, if market is telling he is struggling with an area, you’ll see it on many timeframes, but what do you really think about this? What timeframes must be really used?
Or a price action trader should look to H4, H6, H8, H12 and Daily timeframe to have an overview of the market? This seems to be like trying to find a trade according to me.
Thanks for your answers.
I set a pending trade on the USD/CHD D1 PB at 0.9079 (below the PB). Saw the initial price moved up was thinking of cancelling my pending order but kinda got busy and left it till later my day. Thankfully i didn’t and it hit my TP of 0.9010, for once i am thankful i didn’t rush to cancel the order. :10:
There’s a difference between [I]finding (looking for) trades[/I], and [I]chasing trades[/I]
Each time-frame is it’s own overview of the market. We need not go through all time-frames to get an overview (actually, can make you confused). E.G: D1 can be ranging, while H1 is trending. That is why we treat each time-frame independently.
The one thing that cuts across all time-frames is the key horizontal zone/area. This area will be relevant across all time-frames, and is easily identifiable on a time-frame that has taken some time to form. Hence our drawing S/Rs ( key horizontal levels ) from D1 ( or Weekly or Monthly when necessary ).
So we have a KHL identified; next thing we look for is a price action setup. The higher the time-frame, the more reliable the signal, and whilst D1 and W1 provide A+ opportunities, the intra-day time-frames are also reliable (since each session takes least a few hours to form).
So to answer your question, we can use: H3 / H4 / H6 / H8 / H12 / D1 / W1 to find setups to trade.
Remember time-frames are just demarcations of time showing price flow in that span of time. So long as the time-frame has taken some time to form (hence less susceptible to ‘noise’), we can look for PA setups there.
Reminds me of (many) trades I took in my happy rookie day.
I guess we all have trades like this - where the price went in our direction, stay in the positive for a while before all of a sudden it snapped back to hit our SL.
The same thing could happen on the opposite direction - price went against us, stayed in the negative, then suddenly rushed to meet our TP.
Now what happen is that, in the latter scenario, emotions would make us close the trade and took partial losses instead of letting it run. Trading is no longer a 50/50 game (up or down) because on some trades that could become a winner, you don’t give it a chance to win.
I did that far too often Never did in demo. But with real money on the line, my own mind really plays tricks on me. Something I still need to master.
Maybe you concentrate too much of getting it right and and fear of losing. Best to set and forget with all the levels since you had already planned for it. If you lose just a little dent on the capital and move on. Each trade is independent and we don’t know which one will be the big winners if we start messing with the stops!
First post on the thread, kinda having problems finding mt4 with new york close that works on mac. I’m currently using mt4 through Vantage FX for my mac and really could do with some help on finding a broker that actually has new york close!
