Hi again Guys,
If you use 3 Time frames, example 5 min,15min , 30mins,
You use the 30mins for trend direction,Yes?
and 5 mins for trade entry,Yes?
what would you use the 15min for?
Thanks raf
Hi again Guys,
If you use 3 Time frames, example 5 min,15min , 30mins,
You use the 30mins for trend direction,Yes?
and 5 mins for trade entry,Yes?
what would you use the 15min for?
Thanks raf
Hi Rafmed,
I am Paul and let me share my strategy.
If you win the trade with SL 30 pips = $100 x 100 = $100. If you lose = $100 x 30% = $30
Have a nice trade
Personally I would want to be clear on the trend on a higher timeframe than just the 30 before entering, but that depends on your strategy, I mostly trade when there is a clear trend. In your example, I would want the trend diection to be the same on both the 30 and the 15 before I entered on the 5, as should the 15 and 30 disagree I would think it too choppy to enter given how close those timeframes are (or rather, I would rather find a pair where the two higher timeframes are in agreement). Some traders also put an ema on the chart and look for price to be ahead of it on each of the higher timeframes to indicate momentum and give further reason to enter the trade. But this really all depends on your strategy, I am just saying how I would view it.
Had you asked about, say, the 5, the 60 and the 240, then you would no longer necessarily want the 60 and the 240 to agree, as you might use the higher timeframe for overall trend, and the 60 to check where you are in the cycle, spot retracements.
But there are many shades of opinion on time frame correlation, so hopefully you will get more responses and be able to average them out to suit your style.
I use daily,4 hour and 1 hour…
so you would use the Daily just to see where the trend is going, and try to find a strategy on the 4hour, with entry in the 1 hour.
Is that Right?
Thanks for the posts… all great…
Yes, that is how I would do it generally, although I would also want to see the overall trend reflected on the 240, with some sign of cyclicity on the hourly. It sounds fussy, but I find that the higher probability trades come from waiting until a good set of factors come together that suit your strategy. Having looked at those three timeframes, I will look in on the 5 minute chart to see if there is a reason to have a tighter entry, say you can protect your Stop behind a daily Pivot, resistance line or something. But this is really a personal thing, my approach took a lot of refining until I got to something that worked for me, so you will probably find that you play about with lots of options and find one that works for you.