I was trading eur/usd looking at the chart let’s say a one hour chart and all I could see was green candles setup to signalize an uptrend of course when I scaled down to a 30minutes chart,a 15minute, or a 5 minute chart,I could see a series of pull backs and red candles as well within that pair but when I expanded the chart to an hourly chart all I was seeing was green bullish candles and am rendered confused.
WHAT TIME FRAME SHOULD I USE TO EXCUTE MY TRADES, IT’S REALLY CONFUSING…
I’LL APPRECIATE YOUR KIND ADVICE
Typically there are 2 time frames that you need to consider; a higher time frame which is used for your analysis and a lower time frame on which you execute your trade entry. Using the info you’ve presented, the H1 time frame told you that an uptrend was forming. The 15M gave you the opportunity to enter the trade long during a pull back. Many traders would also have consulted the H4 or the daily time frame to gauge the dominant trend direction before deciding to take the trade.
The particular timeframe you should choose depends on your strategy and the instrument you are trading. If the instrument is too volatile, you will have to use higher timeframe to be able to see the whole picture.
As you have noticed, any trend on minor timeframe could be only a small pullback to the main trend on higher timeframe. To understand the direction of the price movement you will need to perform at least basic fundamental analysis to know what news move the prices. In this case it would be easier for you to find the main direction and then search for the optimal entry point.
In my opinion, the most useful timeframes are D1 and M1/M5. First one is ecessary to understand the whole picture while lower timeframes are important to find entry point with the optimal risk-reward ratio. Even if you will make swing/mid-term trades, lower timeframes will help you to impove your efficiency in trading.
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Get a demo account and at first limit yourself to one time-frame. When this is consistently profitable so that you know you have a strategy that will work consistently (not necessarily 100%) start tracking the time-frames above and below.
At this stage I would recommend starting with D1, then when you have proven you can work your own strategy, refine your entries and exits and filter out the higher risk trades by also looking at W1 and H4. When you are consistently profitable on D1, that’s the time to try day-trading.
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Do you think it has nothing to do with my broker charts coz my strategy would define for me the setup clearly in H1 which does not confirm in lower time frame…
The smallest the framing, the more trigger happy you will become to pull off trades.
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I know EXACTLY how you feel,Higher TF give a BETTER overall sense of what the market is doing, But lower TF’S can give opportunity for a tighter entry (sniper) trade.I look at 3 TF’S 4HR-1HR- AND 30MIN. I ADMIT I WILL PLACE MY TRADE USUALLY IN THE 4HR TF but I have done it on the lowers, IF at least 3 of my 6 strategy requirements are met ,I will take a trade in the TF I’m in
I must admit that the opinion of TOMRO HOPE I got that rt. Is In my view GOOD ADVICE