Hi just looking for some advise, I trade off the 1 hour timeframe using the 4 hour as my bigger picture timeframe, I’m just wondering if plotting my support and resistance on the higher time frame really does matter, as I see all the time that support and resistance breaks quite a lot. When I get a trade signal near these levels should I take the trade or leave them due to the fact that the trend on the 4 hour has reached a supply and demand area. Thanks
It’s important that you see the whole picture. When I open a new chart, one of the first things I do is mark out the main support and resistance areas on the weekly and daily. Then I look for trends and mark out obvious chart patterns. Then I move to the 4 hour and do the same.
It’s up to you when you enter the trade. A signal is great but it’s usually better to be patient and wait for confirmation with price action before jumping in. Also, try to make a habit of checking the calendar for any high impact news events that could potentially stop you out that day.
Good luck.
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One of the most important timeframes is Daily or 1D. Most of the traders use it to see the whole picture and understand main trends. Another important point is that large institutional players also pay attention to the daily charts, so all price levels on daily chart would act as a support and resistance levels. Daily chart is common used, so it would be better to use it instead 4H.
At the same time, lower timeframes are important to. Some of the traders say that they are just a “noise”, but they could be extremely useful in case you need to get into the position with the best risk-reward
I have found the shved_supply_and_demand on chart indicator to be helpful.
Should be able to google it for a link. It’s free. I d/l’d from the MT4/5 website accessed through the trading terminal.
good luck,
KC
So even tho I take my trades on the 1 hour I can use the d1 as my bigger picture time frame?
It depends on the type of trader you are. A daily chart using MAs or even without any indicators will give you the trend, sideways (consolidation), upward or downward. You can see the bias in the market. What makes the difference in the trade is if you\re going long-term, intermediate or short-term on that trade. If I am scalping, then I usually have a 1-minute and 5-minute charts up (after looking at the daily chart) and enter on pullbacks and uses ATR for my PIP target. Now, if you are doing an overnight and forget-about-it trade, then you will be looking at different Time Frames. If you’re a long-term trader, then you look at weekly, daily even monthly charts and you look at other parameters like S&P, DXY, etc etc. In summary, S and R matters and the higher the time frame, the more important that S or R is.
exactly, lower time frame will let you tighten the distance between your entry and stop loss. Drew your support and resistance levels on D1 with different colour than on h1 and when youll have a signal from your strategy that you should sell on D1 support just check twice if that is a good idea.