Hey Pro Traders !
Any idea about how can I use top down analysis using these time frames combination (15 min - 1h - daily) ??
And thanks.
First of all, I am not a pro trader. But, I do have an opinion on how to use this approach.
Basically, What you want to do is to use the Daily flow as your overall biased. This is also the timeframe that I would use to plot my S&R area etc. Then you can use the 1H to plot miniature S&R if needed. You can use this timeframe to investigate the details of the flow from the Daily (is it strong? is it choppy etc.). The 15 min would be for your precision entry so that you could have a tighter stop with the same distance of TP (equals to higher RR).
I am not sure what type of trader you are. But, personally, this combination is more suitable for few days swings maybe? Because as a day/session trader (me), I personally would go down to the 15 seconds to find entry. It’s a double edge sword though. You MUST MUST MUST know what you’re doing.
!!!Things to be cautious!!!
Since you’re looking for entry on the 15 min, the flow on the Daily may or may not be ready yet to resume its push further. In short, if Daily is not ready yet, your 15 min entry generally would not work. In this case, you need to experience it yourself and learn how to gauge it properly. A solid stop management would help you as well on this.
Good luck bro!!
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Thanks for your tips.
Actually, I’m a daytrader I want to hold trades for few hours maybe less and my Reward to Risk not bigger than 2:1, so I thought my entry would be more powerful in 15 min chart than 5 min or 3 min chart.
In your opinion, what combination of time frames would suit my trading style?
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Well, as you get more and more experience later on, you’ll realize that it’s not so much about which timeframe you should choose because the smaller timeframe is just the details of what the bigger timeframe is doing. Hence, there is no exact answer in this. More like static answer I would say.
For now, for your practice purpose, let’s you are comfortable with 3 min for entry (not too fast or slow for you), up 2 timeframe for your directional bias (which means the 15 min would your flow). Only start go to the entry timeframe if you see the 15 min is breaking new high/low. Again, for practice purpose only.
I get it, appreciate it Man !
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