Okay, here’s my first question of the week!!! Again, sorry if it sounds a bit silly but…
I’m a tad confused (what’s new right) with time frames because, regardless which tech analysis we use - if you look at a very short TF - you get a ‘completely different’ picture to that of a longer TF.
But in essence, we’re looking to enter a trade at any given time - but all the TF give ‘different’ pictures.
So how on earth on you meant to know which one is right? This just doesn’t make sense to me.
Ie, I ‘know’ that the longer TF is giving the picture for a ‘longer’ TF but when you’re using the charts and they give you different pictures, I find this very confusing - am I the only one??? Okay, probably yes :34:
If anyone can give me a ‘simple’ answer, then I would be grateful - it is early Monday morning after all…
To keep things simple, here’s one way to make sense of it all. Look at the Higher Time Frames (HTF) charts to identify key support/resistance levels and directional bias. You can use the HTF charts to get a better idea of market structure and market flow. Are we trending? Are we consolidating/ranging?
You can then zoom down into your Lower Time Frame charts (such as 15min) to observe how price reacts at these HTF support/resistance levels and possibly initiate a trade based off of it. If your trade is in line with the HTF directional bias, there may be a better chance of your trade being profitable.
Obviously, a lot more goes into this such as entry techniques, time of day, confluences, etc., but it’s a general way you can look at things.
Here’s a quick example on using the HTF support/resistance levels and transposing onto a lower time frame chart.
Look at the below AUD/USD Daily chart and note the Key 1.01669 level where price reacted to at the beginning of September:
Depending on your entry technique, you can minimize risk by trading HTF support/resistance levels on your lower time frame charts. This is just one angle of looking at things.
Happy Monday to you too Jessey. I always look forward to your posts, they’re always the threads that I can get involved with
It is awkward so you’re not alone; I found this (and actually I still do) a bit tricky.
Using Bankers idea of trading the 1hr, personally I would find the trend & support/resistance on the 4hr, mark any support/resistance on the 1hr too & then jump to the 15mins for the entry. The 15mins, as you said, will look very different from the other time frames but they convey the same information. What I would be looking for is an end to a retracement off a fibs level &/or support/resistance level so price then starts moving with the trend. That would be the buy/sell signal.
The above is just a rough idea, it would depend on your system as if it uses moving averages, your system would need these to cross before you enter a trade so there are other factors to your entry too but the above is what I would be thinking of. As you know, I’m a Newbie too so don’t take my word on it but hopefully it’s the right thing (it’s how I’ve interpreted what I’ve learnt).
Thanks Banker, not knowing any traders, it’s nice to have that outside perspective just confirming that I’m doing something right.
I hate putting myself out there with answers like that in case someone comes along to tear me to shreds in a non-constructive manner.
It’s only been in the last week or so that I’ve started to zoom out on my charts, as you advised, & I have been preferring that to jumping to the higher time-frames so Jessey: that may be something for you to take on-board too.
Hi Guys, thank you for all that, you know I appreciate everyone’s time here…
SladhaFX - thank you for the comprehensive reply and charts - I’m not quite up to speed with everything yet (understatement) but I’m trying…
Hi Baz, cheers for that hon and I hope no one here would tear you to shreds - you’re much too nice a lad for that… And you have learned sooo much for a newbie… I hope to catch up to you one day…
Banker - thanks again, you know I like the ‘simple’ approach…
Can I ask a couple more questions on ‘this’ thread???
As to zooming my charts - you mean I just literally zoom with my mouse (like zooming on google maps for example) - is that what you mean??
Banker - I’m using tradingview which I like - but where do I find the SMA - I don’t see that in the list of indicators?
And how do I draw my support and resist lines please?
I had looked at the various moving averages - I just wanted to clarify which ‘one’ was the SMA - so cheers for that…
I saw the little boxes etc down the left hand side but was a bit nervous to click on them - anyway, I’ve now had a quick look - I’m thinking the ones I use are the ‘tool’ option - 2nd from top in the list and 2nd from bottom…
But let me throw another suggestion out there. Attempt to pick a “default time frame” based on your schedule/routine. In other words, your availability to monitor the charts and still have a life.
For example, if you’re available and want to be glued to the screens as London opens and stay there all day through the EUR close, maybe the shorter 5, 15, & 60 minute time frames is the way to go.
Do you have a full-time job that permits you to check the market hourly, or every 2-3 hours? One guy that used to post here is a dentist and he found 8 hour charts fit his schedule best.
There are a few Dads out there, SimonTemplar is one of them, that trade around their children’s morning & afternoon “school runs” using the longer time frames.
Take a look at Cyco’s thread, he is having lots of success placing trades only once a day in the morning before he goes to work. 301 Moved Permanently
Try to pick, learn, study and trade a time frame that fits into your life.
