The chart looks absolutely different on different timeframes, on a longer time frame, it could be on a downtrend and in between, you notice its up and down on another. Does any other person find this confusing when entering for a trade? How does it work? Please .
The key is the time-frame which matches your plan for the trade. So if you wish to open a trade with SL (and optional TP) derived from the 15-minute chart and you expect to exit by this afternoon, then the 15-minute chart is the key chart. You might look at the 4hr and daily charts to see if your trade is wildly optimistic and high risk because these charts show price is actually in a racing trend in the opposite direction. But the supplementary chart is an informed opinion on your plan, its not the deciding vote. And consulting more and more time-frames will not add value, its not a referendum.
Look at this way. On a one minute chart, there are 60 red and green candles that transform into 1 candle on the 1 Hr chart. Either a red, green, or a spindle candle.
So, it’s like tossing a coin a hundred times. The norm should be almost a 50-50 split, maybe 47-53, but along the way there are runs of consecutive heads and consecutive tails. Try it and see.
thanks. Makes sense
I have been doing my trades with t he help of the H1 charts with success.
I am not sure why you want to do that because reading different time frames at a time would confuse you. You better go for the larger ones to understand the market better.