Good afternoon/morning/evening all
A newbie question revolving around time frames, if I watch indicators for certain signals, I.E crossing over on RSI, the view drastically changes depending on your time frame from 1 min - 5 min - 15 min etc etc, I know that stability increases with longer time frames but how do you decide which to follow.
Well, depends on what type of trader you are. If you’re new, I recommend you stick to 4 HR and Daily Charts. However, if you do decide to trade on a smaller time frame, keep in mind the overall trend.
So if you’re trading on a 15 minute chart, it might not be wise to go long if the daily chart is showing a downtrend.
A simple set up for you could be to trade RSI when both the 15 min and the daily RSI are over or under 50.
With that said, that was just an example. Don’t trade that as any form of system as I cannot attest to the validity of such a strategy.