Hello,
I was wondering if anyone could share their experience if its feasible in reality trading supply and demand reaction in say 5 min (or 15 min) timeframe where each reaction can be few pips (3 to 6) taking into account the spread and commission. Basically from my backtesting S&D works but in reality the spread can be a problem in low time frame taking few pips profit? thanks in advance
I use the M5 and M15 for S+D, just increase your SL by what ever the spread is.
Well, that’s true. It is not easy to backtest using the lower time frames as they have a lot of noise. You must consider using higher time frames where you get a bigger picture of the market and make better trades. As they have a slow price movement, you get some time before planning your trades.
It’s not easy to backtest on smaller time frames because they have a lot of noise and interference. You can use higher time frames that will give you a clearer picture of the trades and you can save your time that you would have otherwise wasted dealing with interference in smaller time frames.
what i have learnt is
S/R on daily
S/D on 4hr/1hr can be nested zones
watch price action on 1hr or 30 min
entry on 15 min or 5 min if you can … but recommended is 15 min
You are doing great! I also try my best to use higher time frames to avoid noise that is an issue with smaller time frames. A bigger picture gets a better idea of general trends and the sentiment that may exist.
Whether you should use a higher time frame or the shorter one depends on your requirements. I use shorter time frames for timing entries in the market that I cannot do that well with higher time frames.
Yes, of course. It is also about the trader’s requirements. For a day trader, where all positions are closed out prior to the day’s ending, shorter time frames will be preferred in comparison to a swing or trend trader, who might hold positions for a longer time.
That’s a problem with backtesting. You really can’t test the historical data based on timeframes and pips. There’s bound to be differences that’ll not be helpful for your current or future trades.
Timeframes depend on person to person. For some people like me, short ones are beneficial while some depend on longer time frames.
Though the choice of a time frame is personal, I don’t prefer trading shorter time frames because there is a lot of noise in them. Talking about higher time frames, it gets better to check data and make your decisions on the basis of that.
That kind of depends upon what platform you are using for this. You can try and see if MT5 works out for you.