Higher TIme Frame Charts

Beginner Questions
1

Here’s a question folks. Do you use higher time frame charts as part of your daily trading routine. I trade EU and GU (day trading every day) and also keep the EG, and Dollar Index open while I trade. My routine is basically the same, in that I keep journal every night of what I’m looking for the next day. I start with the weekly, daily, 4h, 1h and 15m charts. Same routine every night, though Sunday nights I add in the Monthly charts. Even if I were to trade range bars, I would look for trades around htf S/R levels, old highs, lows, etc.

For those who are actively trading, can I ask what role the higher time frame charts play in your trading. As an example let’s say the daily chart. Do you use it every day if you are day trading?

2

Hey Horgaste, good to hear about your routine.

I primarily trade the CFD of the SPX500. I have 3 charts open of the SPX, a Daily, a 4hr and a 1Hr. I always go back and forth between the three so that I have a clear view of what is going on and not get too myopic about what I am seeing. I occasionally look at the weekly, but these three gives me a good perspective on what is happening.

3

I belief that using at leat 1 higher timeframe than the one you trade should always be a part of your strategy. So for daily, look at at least the weekly, possibly the monthly. All depends on your personal trading plan though.

4

Well said :slight_smile:

5

Hi
Yes, higher timeframes play a huge aspect of my trading style. I am a trend trader , so I want to be damn sure that I am trading in the direction of the weekly and monthly trade. But I try to keep the entry simple, I dont load my chart with a lot of useless things. Just a couple of MAs for visual help of the direction of the trend.

About daily charts, they are SO RELIABLE. For a swing trader like me, the daily chart is my home chart. Just look of the monthly and weekly chart agree and then find your entry on the daily chart.

6

I trade on daily time frame but I do have a look at weekly chart as well. It rectifies a lot of confusion when I do that. Looking at one time frame higher than you trade is a good act.

7

Even scalping, I find high TF is necessary too.
Direction is important.

One question for your day trading.
Are you fulltime or partime?

8

Higher timeframes are used for a clearer picture of your instrument. There will be different short term S/R levels at different charts. I am also a daily day trader but I trade only in commodities. And in my analysis I use few technical indicators on four time frames, 1 day, 4 hours, 15 minutes and 5 minutes. I put my trades focusing on 15mins and 4 hour chart. You can also check for S/R using EMA, breakouts, trend lines for more specific picture.

9

I’m trading full time. I spent many years in the corporate world as an accountant, and when I discovered trading back in 2011, I decided that was what I wanted to do full time.

10

Long term traders are using D1 and they are not really entering and exiting trades every day. That’s why it’s called long term trading.

11

Here is a Gartley pattern that was completing last Friday as the markets were closing. I know it’s not a strict pattern as C was not quite 618 of AB.

2016-01-25_2210 - Hogarste’s library

But if you went into this weeks opening looking for Friday’s high to be taken out into supply before getting in, (which I noticed on the Daily first) this becomes an even more attractive pattern, and depending on where you live and the times you trade, one could find entries today that were logical at several different times.

2016-01-25_2216 - Hogarste’s library

12

I am partime now as I need some more time to inflate my small capital. When everything is ready, i will also do fulltime.
I have similar routine as your, high TF and correlation.
It works well, no doubt.