For long term traders, what time frames do you usually use? Also, do you have any tips or things you follow while doing long term trading?
1D and 1W charts! But I don’t think I’m so much of a long term trader though. I hold mine for about 2-5 days only. What time frame are you currently using?
I use only D1 for trade entry and exit decisions and for placing the initial stop-loss.
I have used W1 also to evaluate trends against each other, to identify the best to follow at a particular time.
Its also important what you put on a chart - I only add a couple of MA’s - no trend-lines, channels, support or resistance etc.
Actually, minor timeframes are important too even if you are a long term trader, just because they could help you to get into the position with the best possible risk-reward ratio. Even if you expect that price movement would last for weeks or months, you should pay attention to choosing the right entry point because it allows you either to reduce your risk or to get larger position with the same risk. There are two main approaches to long term trading: some traders just enter the position and set a huge stop to avoid situations when they could be stopped out by short price movement while other traders attempt to “catch” a position with the lowest possible risk. I prefer the second approach since it offers outstanding risk-reward ratio even you will be stopped out and then have to re-enter for several times. Using this approach you will get a position just in the beginning of the new trend that creates excellent profit potential. So, for those who would use the second approach 15-min charts would be also useful.
At the same time, there are no strict rules on what timeframe to use, it all depends on your personal preferrences and the strategy you use.
1-year, 5-year, 20-year, 50 year…
I’m looking at 4H and 1D charts.
Thanks for this. What kind of MA’s are you using?
I will try these approaches to see if I can work around them. Thank you!
Its important to use MA’s of durations and relationship with each other which match your strategy - entry timing, holding period etc. I use 20 and 50EMA’s to define trade direction and mandatory set-up. If both align and are in the appropriate sequence I’m then going to look for an entry opportunity from the daily bars in line with the EMA-flagged trend.
Once in a position, I also refer to the 3EMA and use that as a handy exit indicator - if a trade closes the wrong side of the 3EMA I’m going to take an early loss and get out.
Thank you for sharing! Gives me additional ideas.
I think; D1 is the best choice; it provides the appropriate outlook on the market trend!
I think looking at larger time frames are crucial as it opens your eyes to where you are in the longer term trades… You wouldn’t drop soldiers into a battle site without surveying the terrain…
I use weekly, monthly,daily in order to simply day trade. So if you are swing trading you have to look at bigger time frames to get bigger picture