Hi,
With regards to trend lines, support / resistance lines etc, if i draw these on say a 5hr or 1hr chart, then should i be redrawing them when flipping over to say a 30min or 15min chart, or should i compare and review against the original lines which were drawn?
Great forum and training material on here btw! Thanks to everyone!
Go back one step.
For what purpose are you drawing trendlines?
Apologies trend line was perhaps the wrong word to use - correct me if i’m wrong but a trend could be different across a 5hr and 30min chart i.e. you could see down trend on 5hr chart but may see an up trend on a 30min chart?? A 5hr chart (i.e. bigger time frame) should generally be used to see trend, and a lower time frame chart used to see when to enter a position??
I was initially referring to drawing lines for identifying support / resistance for example. Hmmmm maybe i’ve answered my own question (re-reading what i wrote above). A support / resistance line on a 5hr chart will not be applicable on a 30min chart??
Sorry, i’ve touched upon a couple of things here
If you use the highs or lows on the 5H TF to draw your S/R lines then they will match up on any lower TF. The wicks on 5H candles represent all the candles, right down to 1 second.
Here’s an example of a 4H chart using the low of the 2 candles:
And here’s what that same chart looks like on the 30min TF:
So it all depends on whether your strategy includes the wicks when drawing your SR zones.
Yes, its a classic approach to use the higher TF to identify trend and the lower TF to identify the entry point. People say that higher TF trends impose themselves on the lower TF charts. But is that picture helpful?
Maybe visualise this - if price has been rising for 12 weeks, most of the 60 days within that time period will also have been bullish.
So does rising price for 12 weeks make most of the 60 days bullish or is it really the case that because most of the 60 days were bullish, that printed an uptrend on the weekly chart.
I only use one time-frame.
