Oh i see now.Well lets see my good advice is that TF doesnt matter on the technical side of the trade.I mean that a 5M TF will and should have the same results as a 1H or 5H,when there is enough liquidity.Also spread is very critical.So if you have low spread and the pair is very liquid like EUR/USD from London open to NY close, you should technically have the same results on whatever timeframe you trade, because the market is behaving like fractals so TF doesnt matter.This is, i believe a good point to trade or TF like 15m or 30m, because you can trade more, and it is better to have more little trades than 1 big trade, even on statistical scale, it will show you your skills more accurately because youâll have more data from to learn and improve, plus if you mess up 1 or 2 trades a day you can have the chance to correct it and sleep good at night rather than have 1 bad trade a day for a week long time,which will make you very stressful and drive you mad on the long term.So i definitely would trade on TF or low TF because of these good points, but you should do what you feel comfortable with
Also i find your tehnique very nice and clear, and its pretty good, but i`d like to point out that for me the trend lines dont really got me.The market is trending (strongly) like 20-30% of the time, and still even then it is hard to find a reliable one.Plus i find the trend line tool very inaccurate,basically it just connects High/Low points of already established S/R lines.But the problem is that while a S/R is an exit sign, the trendline is an entry one which doesnt make sence since the TL is derived from the S/R lines basically.So i find that very hard to digest.If i were you i would focus more on fibonacci pivot points.They are good exit signs and also sometimes show you a general good trade setup.
I firstly was a trend follower but then i realized that it was no good so i`m now a scalper of mostly retracements but also reversal trader.
Unfortunately, in my case, I donât have the time time to look at the charts most of the time, as I have my day job, and during the night, I have very limited time to look at them. So my alternative is to look at higher time frames, where movements takes a while. It gives me the time I need to analyze charts, wait for some setups, then enter trades.
I would also agree that time frame doesnât really matter if youâre on technical analysis, but the higher up you go to time frames (I heard one speaker say), the better it is for technical analysis, as it most of the time has lesser ârandomâ movements. âŚand I agree with him.
No thats only an illusion.The market is the same on all timeframes, if it has enought liquidity, so this is why i only trade from london open to ny close, sometimes to london close since after that the liq starts to weaken.As for small timeframes, maybe it has a bit more influence from speculators,but the speculators do the same as the commercial traders so i dont think it will mess up the price movement, so in my point of view maybe not the M1 chart because that has low liquidity but anywhere from M5 to MN is ok to trade,if you have high spreads then from M15.
Also if you dont have time to trade its ok.But if you have then it is better to trade on low timeframes like M15 because if you lose you lose less and if you take more trades, with good RR then its better than take 1 trade /day which is bad.Imagine 10 losing streak if youâd take 1 trade/day,thats 2 very bad weeks.It would make you mad isnt it? But 10 losing streak on M15 may be only a bad day not 2 bad weeks so it is more comfortable psychologically.
Iâve been in the forex world for quite a time now more than a year now.Iâve traded a few months with back but i didnt had so good results.I was on plus balance but not that much, so since then i am researching the market and looking for good and advanced strategies and also trying to learn the behavior of the price.Also im building and EA for this, so im not trading now.
All that i told u was from my research and learning path.I also read many books about price behavior.
This trade was met with a stop loss. Looking at the daily time frame, the stop loss was hit hard, and prices seems to continued moving against me. The entry was at the vertical white line.
After a while, the trade was nearing my take profit⌠but being afraid of loosing this trade, I manually closed the trade at the blue triangle on the right.
On the daily time frame, there seems to be an uptrend as specified by the yellow line. At the same time, I have to take note of the possible resistance at the horizontal yellow dashed line.
This trade is even against all my rules, for one, this trade doesnât meet the minimum criteria of 1:1 reward to risk ratio, but I still went for it, thinking the rally upward will continue.
Though this trade was with a limited risk, if I have set the stop loss on the next low, then I could have one this trade, looking at the current chart today.
