How can we look at a shorter time frame and get a better price? Sometimes the signals won’t be corelated, and if we wait for the lower timeframe to give us a signal, we might miss the whole move (if the lower TF never signals)!
Sure, I could have waited for stochs on the 4h to form a rope and dip, then turn back up (see 4h chart attached), but what if they had stayed overbought and price went straight up? I could have just waited until after the interest rate announcement, but there are just a TON of what-ifs that I really think you just have to discard and go with the system to figure out. Sometimes you’ll get a bad entry and make 600 pips instead of 800 pips, oh well!
Also, if I’m moving to a shorter timeframe, it would be the 4h. I’m approaching this system with the “look at the charts once a day” method, so I can’t (rather, choose not to) really follow the 4h. I know Ingot is using daily/weekly/monthly, but I don’t know if that suits my style…maybe it does and I don’t know it yet. We’ll have to see how this turns out.
Check the CAD chart I’ve attached. I did a fib retracement from the peak in Feb to the low in Nov. Looks like we’re right at the 38.2 level and the past few bars or so are having a hard time breaking it. Have to keep a close eye here as well.
I was under the impression that we were looking at the 100-200 MAs to establish trend, which at this time on the AU, the daily and weekly are all still up, while the monthly is all bunched up trying to roll over.
Yes indeed the entry on Nov 11 would have made us some pips, but also note that it gapped down the next day. I’m not sure exactly what you could have entered at with slippage and spreads, I wasn’t paying much attention back then.
From reading spudfyre’s threads, it seems that as long as the stochs are combed, we’re good to trade, and we want to exit on fishnets. And when there’s a tight rope formed, it’s going to be a NICE trade, but it doesn’t mean that we won’t have winners without a rope. But yes, check the TF above you for trend confirmation.
In Alan S. Farley’s book [U]The Master Swing Trader[/U], he talks about the “3D view”, which uses the larger TF to establish trend, the current TF for signals, and the lower TF for entries. It sounds great, but I just don’t know yet how we can specify our entries on shorter TFs. If we wait for all three signals to correlate, we don’t get many signals. Is that important though when they’re all huge winners? What if they aren’t?
Someone please correct me if I interpreted that wrong.