The lower you go down in your timeframes, the messier the price action becomes. The lowest timeframes like the minute or second charts contain the most “noise”, or random unpredictable market movements.
I also believe that we have to applying longer-term plan it’s more easy to use especially because of what it contains of many reasons which making our trading experiment much more stable and safety especially because of its basically count on traded the lowest possible lot size which can positively reflects on our free margin liquidity by increasing it and as we knows it’s our friend and also could be our enemy in case of we are decreasing its value so in another word we have to avoid trading on any frame time charts less than the 30 minutes.
I agree with you - longer timeframes generally have less “noise” and therefore usually show cleaner trends. It’s also why most newer traders [I]should[/I] start with higher time frames and trade downwards towards lower time frames as long as they can remain profitable.
Too many people try to go the other way around and are discouraged because they lose their money!
large time frames are good in this sense that they can tell stable market position . In low time frame we can not decide well about market situation because it changes quickly .We can confirm trend by seeing both types of time frames .
Yes, longer time frames have less noise and maybe more desirable. Despite this, EA system developers and trade strategists should also note that large price movements of 50 pips or more that can change the overall trend often occurs within a minute. It can also stop you and make your overall strategy less effective. If one minute seems to be a lot noisier, try 5 minutes which is also a good indicator of abnormal price movements.
Hello Jeffcabigao,
I am newbie as well but after trading demo and experimenting with real accounts one or twice and i lost, recently tried the 4hr charts and i found out that they are more stable and reliable when i use my indicators( bolinger bands, TDI, a two ema moving averages). I have made up my mind to trade the 4 hour charts even if it means i will scalp it. What do you think?
In my trading usually i start with daily down to M1 TF. I look at bigger TF to find high probability areas and the lower TF to find entry points. In my experience, Lower TF (including M1) can tell u a lot about what the price/market is doing. Cheers.
[QUOTE=“pips4x;622308”]In my trading usually i start with daily down to M1 TF. I look at bigger TF to find high probability areas and the lower TF to find entry points. In my experience, Lower TF (including M1) can tell u a lot about what the price/market is doing. Cheers.[/QUOTE]
for price itself - there is no such a thing like a “time-frame”.
Time-frame is an invention dictated by creators of trading platforms.
Therefore I think that trader has to look at the “whole”. No matter is he working on H4 or m5. Each price movement on h4 consists of movements of H1 (h1 of m30 … etc). And each movement on smaller TF is a part of some higher grade movement.
Synthesizing all TF’s - is the key to success
Choosing a time frame depends a lot on the trader. Choosing a short time frame means you can enter and exit a trade quickly and in several times a day . But you can succeed when you are an experience trader. While in longer time can also be profitable most especially with a lot of patience and calmness.
It all depends on your trading strategy. If your trading strategy works using lower timeframe, then you should stick with lower timeframe. If your trading strategy works better with higher timeframe, then you should trade with higher timeframe. For me, i don’t think we should compare the two and decide which one is absolutely better than the other and then we should only use the better of the two. A good trading strategy is what we need to trade well and make money. The choice of timeframe is dependent on whether it can suit the overall trading strategy based on testing.
It depends on the trading strategy and on your psychological profile of course. One thing to keep in mind is that spreads and commissions tend to be much more significant in lower time frame trades, given the spread will be typically a much higher part in terms of percentage from your overall r&r. Longer time-frames can also serve as an educational tool for traders in terms of developing a key psychological element in their trading: patience, patience, patience.
I like low time frames for scalping and large time frames for long term trading. As a short term trade I have to see ow time frames. it depends on your reading of time frames and trend definition … You can use your skill as well as different time charts to find true entry in forex market. Lower time frames as M1 I will not recommend because n such short time we can not analyze well.
Anything less than 30m is just not worthy, I have tried several indicators or methods and mostly it’s 30 minutes or 1h charts that works the best and even currently I am trying strategy which is best with 1h charts.
For yourself, perhaps. But there are also large numbers of people making their consistent livings by trading forex who feel very differently about it.
Exactly so: it’s an articificial construct of charting.
Not really, Jeff.
As hinted at in one or two posts above, it’s our perceptions of them, rather than the price action itself, that [I][U]appear[/U][/I] messier and harder to interpret.
Higher time-frames, for profitable methods with an edge, [I]certainly[/I] tend to give more reliable signals, for all the obvious reasons to do with what we perceive as signal-to-noise ratio. They also give fewer trades. One has to assess, for any given system, which works out better overall: it’s actually no formality at all that trading only from higher time-frames will necessarily give better [U]overall[/U] results.
[I]All charts are tick charts[/I], really: what varies is the method and timescale of translating and compressing those ticks into definable bars, candles, or whatever charting method we [I]choose[/I] to use, to interpret them.
