But, major news events like NFP, FOMC always react instantly! I use both in my trading.
NFP not worked at all in my whole trading career, even though so many traders depend on this particularly during news.
Hm yes I do also think that the more common and obvious the set up is the easier it is for the market to adopt to it and to find a way to get around it. However, if a may use a quote from an article of Van Tharp Institute: trading without a pre-determined exit point is like driving across town and not stopping for red lights - you might get away with it a few times but sooner or later something nasty will happen. This actually is valid also for depending too much on trading during NFP or other major news releases.
I like to trade to pre determined exits for both targets and stops because I donât like to be watching the market for hours on end but there are good arguments for not having a pre determined exit for trend trades if you are in fact trading a real trend that isâŚmy definition of a real trend is that all time frames are pointing in the same direction.
Daily timeframe for me and with the âset and forgetâ mentality, I check the charts once a day for about 30 - 45 min. Itâs mainly because of my full-time job but I donât fancy the idea of sitting in front of the computer the whole day. I can easily trade the NY session but the intra-day trading is simply not appealing to me.
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very interesting. Have you had success with Daily charts? i trade daily too.
Maybe you can trade after NFP session based on the recent market trend.
I am like trading with using daily timeframe, but also still look on weekly timeframe to reading range movement and also major trend, because often work as swing trading, which sometime open order more than a day trading and sometime a week, all depending with plan trading and target, use stop loss with reading on support and resistance area
How is your experience have you had success? Cause thatâs exactly what I do but I have just started
If that were actually true, Tommor, then youâd expect that experienced traders would fairly reliably be able to tell the difference between one-day and one-minute charts (with their time-frame labels removed), wouldnât you?
But thereâs a lot of independent, objective research showing (unsurprisingly to all those of us who believe that charts are fractal, and that the proportion of ânoiseâ is the same regardless of time-frame) that they canât actually do any better than would be accounted for by ârandom guessesâ, i.e. they only get it right 50% of the time.
Why do you think that is?
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Charts are absolutely fractal, so a chart with 100 bars will look identical whether the time-frame is 1 minute or 1 year or anything in between.
But the noise on intra-day time-frame charts isnât the volatility of the individual bars themselves, its that price behaviour and patterns tend more often to be misleading to traders. So reversal patterns are more often failures or false, support or resistance levels are more often insignificant, trends are more often weak or contrary or subject to unanticipated failure.
Not within their own timeframe, surely?
How would that be possible, if the charts are âabsolutely fractalâ?
I suspect youâre saying those moves arenât big enough for you, because you prefer much longer trade durations? And thereâs nothing wrong with that at all, of course, and youâre in good company. But it doesnât make the faster charts themselves any different from the slower ones, does it (as youâve surely acknowledged by agreeing that theyâre âabsolutely fractalâ)?
This idea that thereâs more ânoiseâ on faster charts is really a misunderstanding, based on lack of clarity in the definition of terms, it seems to me. If theyâre absolutely fractal, then theyâre clearly each as âreliableâ and âsignificantâ as each other with reference to their own time-frames. The preference for slower time-frames (which Iâm in no way criticising) isnât really about ânoiseâ or âreliabilityâ inherent to time-frames at all, is it?
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Thanks for your suggestion , but I donât think so it will works with surely.
Actually, I very much agree. the discrepancy between the helpfulness of long-term signals/patterns and short-term signals/patterns does largely come from their application to a different time-fame, usually from shorter to long.
So, an intra-day support/resistance should not be applied to the management of a long-term multi-day trade. And this is where I part company with most long-term traders, as they very often use 4 hourly or shorter charts to define their entries into longer-term trades. Whereas I think thatâs an abuse.
Right now I vote for H4 100%, with this time frame I am able to analyze the market with maximum precision, avoid trading mistakes and so on. I find it hard to understand the traders, who trade on 1 min, itâs more like a casino.
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I usually use H1 timeframe. I think itâs the best for me, as on this timeframe itâs easier to make market technical analysis.