Which one is recommendable for new traders like me? Do I go in for a shorter time frame or the longer ones?,I read some information on both but I donot know the one suitable( that works well for new traders)
You go for the time frame that suits your situation best based on your life situation - work, school, family, etc… Pick one that you’ll be able to operate in consistently and go from there.
As mentioned above, it depends very much on your own circumstances, availability and convenience.
That said, it’s generally true that higher time-frames give more reliable trade entry-signals. They also give fewer of them.
But note, also, that the fact that higher time-frames give more reliable signals doesn’t, in itself, necessarily make them more profitable: it can work out better, overall, to have a much greater availability of slightly less reliable signals. The assessment of this is just one of the countless statistical/probabilistic issues that traders have to learn to master, to perform our activity successfully. It’s clearly twice as well-paid to make an average of ten pips eight times per day as it is to make an average of twenty pips twice a day.
I am reading a lot about this and I know many traders who went from a view trades in a day to only 1 or 2 trades a week Overtrading kills many accounts. Get a demo account and find out for yourself what works the best for you
I also feel the same that the choice of chart time frames in a personal preference. You can trade with any chart time frame in which you are comfortable. You would better know about your preference after you have tried all the chart time frames in a demo account. First try this in demo then choose one time frame and trade in live.
Choosing timeframe on the chart as trigger decision also depending with style trading that will implemented, for intraday trader might they use 1 or 4 hour timeframe to making decision will still comfortable than use weekly timeframe, but different with scalping trader might they prefer use 5 or 15 minute timeframe to analyze and making decision in the market.
Is there a cheat sheet or rule of thumb to follow for chart parameters and times based on style of trading?
Like if I want to trade every couple of days, more swing style, what chart timing would I look at and what parameters for the most common indicators?
In terms of chart time frame, you’re probably looking at 1 hour or 4 hour bars, though it could even be daily bars. Depends on the methodology you use. For example, if you’re using a MA cross-over, the longer the MA probably the shorter the bars.
It also depends on who you ask, for instense my mentor is adament about staying away from smaller time frames like 30min, 1, even the 4hr, and he only trades the day, wk and month. Ive been back testing this advice and seems to make a huge difference. I guess at the end ofvthevday its up to you personaly and your account size. If your under funded say less than 1k in a mini account it be hard to take some of the big setups on the higher time frames due to stop loss requirements. One solution to that would be to find a higher time frame set up then cut to a lower time fram establish a support or resistance then wait for a breakout.
Most reliable in my opionion and in this order, macd(24,52,9) rsi(9) stochastic slow, on higher time frames. Ive personaly had more success with no indacators at all, just candlesticks and bollinger bands on day chart.
This is very subjective topic, because what may suit me may not suit you. But on general basis i would say that if you are too occupied with many other things then go for longer time frame which gives you more space for trading with certain conditions. And if you have ample of time to monitor the screen then certainly short time frames are helpful.
Depends on what kind of trading strategy you use.
If you’re swing trading, the best time frames are D1 and H4.
What’s the rationale?
H1 and below - too may false signals, erratic, and doesn’t show bigger pricture
Weekly - kind of okay too but it doesn’t show reasonable signals as frequently
Monthly - same as weekly
I have not seen anyone trade the H3 time frame which I like to use with H8 and D1 time frame. is there any reason why these not used as much?
I dont recommend trading real money until you master a strategy that is testable and confirms profit over time. The time frame is based on personal preference. Traders that get in and get out quick are called (scalpers.) They typically use the 5 min and 15 min. swing traders: traders who trade more than 1 day and that may last up to a few weeks look at 4 hour, daily, and weekly. From my experience the bigger time frames provide more general knowledge where price action is likely to go next. Add that with a plan and stick to it. As always Happy Trading
Usually, they are worth nothing. Major time frames are usually 4 hour. I looked at the 8 hour once and didnt see any significant difference between that and the 4 hour. 4 hour is what most professional and the house uses… stick to what everyone else is looking at to keep on the same page/move
Correction: scalpers use fast tick-charts, because even 1-minute charts are too slow for scalping: they’re [I]certainly[/I] not using 15-minute charts! I use 5-minute and 15-minute charts, and I’m nowhere near being a scalper.
What seems to be working for me is a very hands-on short trading style. I’m a rookie of the lowest order so practicing the short trades and finding support/resistance, retracements and candlestick patterns (among other things of course) is starting to make all of this feel more natural and automatic. Going from the ground up gives you stronger skills in my opinion.
But like I said, I’m a rookie so take this with a grain of salt
The Timeframe you choose depends on your trading style. The smaller the timeframe the harder it is, especially in the beginning even if you want to scalp, too much noise and false signals. Starting with the bigger timeframes you get the idea how the price is moving overall. Basically you should look at 3 different timeframes, the largest one to see the big picture , the smaller one to indicate the trend and choose which way you are entering and the smallest one to pick up the right entry and exit moment. For example you can take the Daily , the 1 Hour and the 5 Min Chart. Don’t just look at one timeframe its like being blindfolded.