Hello fellow traders,
this might be a very stupid question, but I just watched the market in my typical 1hr settings. I tried the Bollinger Bands, the MACD, the RSI and the Ichimoku and I thought I found a good market signal and switched to the 15 minute frames to take a closer look and everything was changed.
This makes perfeclty sense ofc because all the candles will have different entry/exit as well as high/low figures, but my question now is:
“Can I trade indicator XYZ in any time frame?”
I mean a sell signal from Bollinger in the 1hr chart could be a buy signal in the 5 min chart at the same time.
Sure, the 5 min chart will be for many more trades with less pip movement, but still I wonder a bit.
Punish me with your wisdom please!
In general, they all move in the same way for all time frames…
But anything less than 1hr will be affected by news releases…so you may think that they are random…
Also the % of cost (spread/commission) is higher in the lower time frames…
For a long time, I was trying to wait for an alignment of time frames…But realized that 5mins changes inevitable will affect 1hr time frames…it’s not merely the case that 1 hr is the dominant trend…It takes 12 bars of 5 mins to make 1 hr…The sooner u figure out that longer time frames takes orders from short ones…the better…
Bottom line is, just stick to one time frame instead of jumping all over… =)
Well I think the idea of multiple time-frame trading is that you can get an idea of the general trend. If i take a look at the 4hr time frame and it shows me a huge upwards trend during the last xx days, then I take a look and see on the 30 min frame that there is a downtrend since x hours, so it looks like an recession and I would probably look for bearish entries in the 5 min. time frame but trade with caution or i would wait till there is another bullish opportunity to enter and follow the general trend.
I’m a fan of the MACD in the 30-minute interval and the RSI value in the Daily interval, but I haven’t backtested enough variations to know what is best or if these are worth even having on a chart.
I do not think that M1 is a good time interval for beginners that do not have a huge bankroll. The movements are fast and you have to respond fast as well, the reward option is higher, so is the risk, M1 is effected much stronger by news, so you need to know the market much betterand probably pay for some instand news service and the spread is eating away a lot more money when you trade many small profit trades.