Hello pals, am an intraday trader, can i use 4hr to spot the overall trend then use 30 minutes for entries?? replies please…
Hi, 4hr is too far from m30, try to use h1. Regards Greg
1hr for entries??.. I thought the general thumb for time frame differences should be 4x - 6x, 4hr and 30 mins is 8x and i feel it cool that way because there is enough space between both time frames. I think the more far apart they are the better dont you think?
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As for entering the 30m is, IMO, not a long-term successful method as there will be several price wave changes that could stop you out, and why seasoned profitable intraday traders trade from the higher levels where most times the wave price movement is more steady.
My three ducks in a row is part of my trending strategy. I find a trend from the Daily chart, then drop down to the 4hr chart for entry, which must be in synch, and down to the 15m to find out what’s happening there.
Hopefully the 15m will show a bias towards the two upper levels. If not, it’s watching and waiting until it lines up. Or you could also use the 1hr for confirmation instead.
Hope that helps.
Ok thanks for your thoughts, but can i use the 4hr time frame for short term swing?
There are no restrictions to whatever T/F you use to enter a trade. The price order movement will show the same on all TF charts, but there would be 5 candles on the 1m chart to one candle on the 5 min chart,
So the 4hr chart will only show one complete candle every four hours, whereas the 30m would show one complete candle every 30 minutes. Your choice.
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use 1hr to spot the overall trend
Exactly. It depends on what type of trader you are and your strategy. Your strategy will determine this ‘rule’ eventually, just keep at it.
Some traders warn against using multiple timeframes. Some use indicators that need to align on several different timeframes at the same time. Others, like me, follow the long-term trends such as weekly trends and use shorter TF’s like daily & 4H to find entries based on price action (pullbacks).
Figuring out what type of trader you are takes time. I would love to be a scalper or day trader, but I don’t do well at it and it took me years to accept that. So, I am a swing trader.
Good luck!
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I think long term time-frames more reliable but make money slower, but longterm you prob make more by patiently following W1 or D1 rather than manically scalping the M1!
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100% true, for me anyways. Patience is my weakness, I want results now, just like most people. But after 5 years of trial and error I have 2 choices: scalp and lose money, or swing trade and make money. It’s a no-brainer.
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Patience major flaw in my character as well. Prob same for most traders, otherwise we’d all just have an S&P500 tracker and snooze waiting for our 3% per year!
Actually there’s really no comparison to investing and trading (I inow this is all very off topic but @MattyMoney has side-tracked me - blame him!) I used to try to invest (buy and hols strategy) and I was supposed to be happy with 4% dividend income (taxed at 35% if outside an ISA). You can make more than that in 1 day of trading and life’s really too short not to go for it. Just have to controll your losses and not get over-excited!!
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I’m an advocate of multi-tier saving/investing.
Now - something immediate like forex.
Savings - 3-4 months savings in case of an emergency.
Retirement - Investment account that you contribute to weekly.
There are some good long term investments other than ETF’s (not that there’s anything wrong with ETF’s) like banks that give good dividends and have stable, long term growth. But it’s best to start early.
H4 is okay, but personally I use the daily time frame to identify the market trend!
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Where do you place your targets?
I first look at 1W charts to determine general trend. I will most likely already know these, as well as knowing what markets I’m interested in. I then look at 1D charts and look for concurrence. If the trend is confirmed I use 4hr charts to give me my entry. For example after a pullback. I then use the 1D chart to give me my exit signal. I don’t have profit targets, the charts tell me when my trade is no longer valid and I therefore close the trade.
I find this keeps me in trades for several days, sometimes weeks. This way of trading suits me, as I trade around a full time job.
I think, 15 minute time is much better option, but if you are okay with 30 minute time frame; then no issue indeed!
Use whatever works for you… some intraday traders use even de 5 minute and 1 minute…
Also depends on the volatility of the pair… when markets are moving fast, you may need to go to a lower timeframe in order to get a reasonable risk
I’ll suggest using 4h and 1h. But for short term swing, you can choose your timeframe around 30 minutes to 2H.
The thing is, time frame is not of the utmost importance as long as you can analyse, correctly identify the price actions, and place your trades. Remember, more than the entry point, the exit point more importantly determines whether your trade is profit or loss.
Yeah…that is the general rule.
Although there is no fixed rule and it will depend on how you trade and the sort of signals and configurations you are looking for. If I am looking at a 4Hr chart as an anchor, I sometimes find myself looking at a 60m chart for signals, but often a 15min chart, or sometimes a 5min chart. Or if I am using the 4Hr as a signal, then often I am looking at Weekly as an anchor.
I remember a few weeks ago in the EURUSD, on a Daily Bear Expansion breakout candle, the signal chart that would have got me into the trade, had to be the 5 minutes candle chart. Anything higher than that, didn’t provide the sort of resolution that would have allowed me to act…so I missed out. What the right combination is, is a question of the velocity of the market, something which you won’t be able to know for sure until after the event.