I was doing some back testing of simple trading strategies on the daily time frame In order to get some screen time. I was spotting pennants but there was one simple issue in my mind, although it could just be me being bad at spotting them, there was a 182 bar gap sometimes between pennants. Including weekends that 258 days!! How does this work? I think that’s like 3/4 of a year without a trade if my strategy was to trade pennants. How do I deal with this? (I know professionals use multiple charts but as a beginner I am meant to only focus on one).
There are other decent strategies you can use for trading the daily charts, don’t limit yourself so much. Look at other patterns and pairs, but limit your number of trades at any given time to avoid overexposure due to correlated pairs (example: AUDUSD & NZDUSD typically move together).
You can find the same patterns on shorter timeframes as well, such as 4, 8 & 12hr, as long as you’re platform allows them.
Take a look at a couple of decent strategies using daily candles laid out by one of our members here and here
Good luck.
2 Likes
I trade multiple markets about twenty in all. I only trade long too and yet have aound 10 trades a month - give or take.
I trade inside bars that only need two days bars and they occur often
Trading pennants on a daily you are looking at maybe a months days of prices (depending on how your drawing them)
If you are using pennants intra day you may come up with a more respectable number of trades if you trade multiple markets
One thing about inside bars though is that they are like pennants or triangles but without the need to go to the lower time frame to draw the trendlines - making it all very simple
3 Likes
There are a lot of strategies that you can use. If one strategy doesn’t work, there are a lot of strategies that will. Try RSI, MACD, or price action if you haven’t yet.
Choosing the best time frame to trade forex depends greatly on the trader’s preferred trading style and strategies used. If you are looking for a suitable time frame for yourself, consider your trading style and the strategy you follow. These are the only things that are important to determine an appropriate time frame.A