Hi, which is in your opinion and experience a better time frame for trading h4 or D1? With which of these you score better results?
I am trading on d1 for almost a year but in the past two months, I think I can have a better and faster and precise enter with trading on H4.
I have a small account so I don’t have a lot of room for tasting, so I will be grateful if you share your experience here.
tnx
1 Like
In general, D1 is much more popular among traders and investors. Thus, it is possible to say that it is more important. For example, institutional players build their decisions upon the information form daily charts, so if you want to analyse long term trends D1 would be the best solutions.
At the same time, it all depends on particular strategies. If your particular system generates entry signals on H4, you can use it without all doubts. To find this out you can just try two use both two timeframes simultaneously to find one that works better for your strategy. It also depends on the purpose: whether you are going to use it for analysis of for finding entry points. For the last one purpose lower timframes are better in most of the cases (unless they create too much noise so you will have to move to higher timeframe to see the clear picture. You can also try to use H1 - it would be more accurate than H4 and work best together with D1.
So, there is no fixed answer that one of them is better. Try them both and then make a decision based on your particular needs to find the best solutions.
1 Like
My experience.
H4 H8 and D1 are all good time frames. Signals on the D1 are usually safer and you will be faked out less often but you also may miss some signals that present on H4.
I often trade a H12 chart that I set up in trading view. In general higher time frames such as H12 and D1 are less risky.
It really depends on you though. If you are seeing success on the H4 that is awesome! keep it up!
1 Like
I trade off D1 only, so all entries are derived from that, almost always these are through pre-set orders set at daily highs/lows. I reckon that if price exceeds a daily high, that’s more significant than if price exceeds a H4 high - especially if it then fails to breach the D1 high.
Focusing on H4 seems to me to have additional dangers -
H4 bars include market action during the very low volume Asian session. The largest and most significant price moves occur during the high volume London & New York sessions. Although obviously Asian price action is included in the D1 bars, these do not normally mark the day’s high and low, while the H4 time-frame deliberately seeks out the unimportant highs and lows of the overnight time period.
H4 bars tend towards over-focus on entry prices and entry patterns. These are less important than exit and stop-loss prices and patterns.
H4 bars encourage over-trading.
I do use W1 charts to help me confirm trends and trend strengths.
I don’t recommend any intra-day charts or trading for new traders.
2 Likes
All my trades are done on the daily timeframe. I found that spreads and transactions costs will slowly bleed you to death on H4 and below, and erode any edge you have.
As for analogy, with 4H you can see the road ahead clear enough as far as 4 KM.
But with H24 aka D1 you can see the road more far and clear as long as 24 KM.
So, D1 is more valid time frame.