The 1-minute to 15-minute timeframe goes well with my scalping strategy.
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This is not 100% correct, it’s very common to see beginners say this, it all comes down to position sizing.
Let me show you an example:
The formula to calculate position size (not exact as there are calculators for this and you can enter current rates and etc. for an exact calculation, but as a standard rule, you can use this formula) is: $ risk / SL pips / 10.
So $100 risk on a 5 pip trade on the 5-minute timeframe, for example, would be $100/5/10 = a position size of 2.0 lots
$100 risk on a 70 pips trade on the D1 timeframe, for example. would be $100/70/10 = a position size of 0.14 lots.
If both positions hit SL, you’d still lose $100, no difference there.
The only difference is more often than not, price action signals are MUCH MORE accurate and reliable on the larger timeframe - this no one can argue against.
I am currently using Oanda and quite happy with them in all aspects.
I used to use IC Markets and IG Markets as well. I especially liked IC Markets as they offer “raw” accounts which offer very very low spreads. I moved to Oanda because I was offered a deal to use Tradingview for free for a year and also I am able to trade directly on Tradingview rather than having to analyse on it then place trades on MT4/5.
Hope this helps.
I prefer trading 30 minutes - 4 hours weekly timeframe.
Yes, mate, it helps. And I am more than grateful. Happy trading. May the Pips always be in your favour
Being a scalper, I trade on 5-minute timeframe.
I find shorter time frames quite noisy. Larger ones are easier and better to trade with. Anyway thanks for sharing this detailed information here. It is quite useful and I’m sure it will help a lot of traders here.
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I prefer trading 1 and 5 minute charts, don’t have the time and patience for anything more than that.
I trade both hourly and daily charts, but that may seem misleading because I’m not an intraday trader. Am mostly a swing trader so I only enter around 1-3 trades a week. I 100% agree on the part that “it suits your lifestyle.” I like this style too because I don’t want to be in front of my charts 24/5. Like, I honestly don’t get the point of making your money work for you if you have to monitor it every second of your life lol.
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Each to their own of course and I wish you nothing more than the best of luck.
But in my opinion, based on your comment:
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You don’t have time - then isn’t the longer timeframe should be your friend here given that you don’t have the time?
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You don’t have the patience - if you ask any professional or profitable traders, patience is key to becoming successful. It doesn’t matter whether you trade the longer or shorter timeframe, the market does its thing and you still have to wait regardless for your entry, you can’t just blindly enter into a trade, right? So would you rather wait and do other things that make you happy (hobby, spend time with family and loved ones or make you money (side job, full time job) (longer timeframe), or would you rather wait and stare at the screen which you would have to do constantly for the shorter timeframe for your opportunity?
Just my thoughts, not attacking or trying to change your mind.
Again, each to their own, there are thousands of ways to trade and be profitable whether it’s on a longer or shorter timeframe.
Best wishes and good trading.
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That is correct my friend and that’s exactly how it should be.
In trading, the terms “less is more” has never been more true.
Quality over quantity, always. And, yes you are right, you should be making your money work for you, not the other way around.
Higher time frame is suitable for the majority of traders. The biggest advantage is one doesn’t have to sit in front of the screen for the entire day. You can just wait patiently and analyze the markets before entering the trade. It also gives you an advantage to trade calculated risks.
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Swing and scalp!
1 minute to 4 hours is what I look for.
Mine is 15 minutes - 4 hours.
Mainly 5min or 15min depending on where I see the set up. I set alerts for general POI and then look for the entry if applicable. I only trade in fixed time slots so not a time consuming way to trade for me.
To all the new traders trying to get into profit, trading on time-frames of hours or minutes, goodbye and good luck.
Hello tommor,
I am currently trying out something similar to the way you trade as regards buying lower high and lower low on the daily. I remember you mentioning once or twice about using atr 20 x 2 as your stop loss. Do you still use this as your stop loss? I know these things can be subjective but I would like to hear your view now on it, has this evolved or changed over time?
This is a G/Chf sell below that I have on atm. Are you in something similar?
Cheers John
Right now I’m using ATR14 x 2 as the stop-loss distance, with a trailing stop, and a risk of not more than 1% of capital. ATR14 is the default setting it seems and I didn’t really have a good reason to use 20 in preference so I’ve gone with the majority.
I ignore support and resistance levels when setting the SL, I just put it at exactly 2ATR14 but I admit many traders would say set the SL according to the s/r levels, and only then adjust it to not less than the 2ATR14 distance. They might be right, their approach might suit better though I find identifying s/r levels to be like abstract art - you see what you want to see.
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What gets me is the SR levels and then the zones. Zones are definitely abstract art.I plot levels off the monthly Weekly and daily line charts but it can be more of a distraction than a help I think at this stage even keeping me out of straight forward trend trades that would have worked.
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Yes, I find this a damn nuisance too. There are always potential support levels and potential resistance levels and so many times they mean nothing. I bet in a 3mth D1 chart we could find 10 s/r levels and 10 trend-lines.
I am increasingly attracted to swing high and swing low levels though because these can be identified using strict rules, so we can all agree where they are, and they seem to mean more. Well, that’s the theory so far.
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I like to trade in 15 and 30-minute time frames during the London and US sessions, but the higher TFs can be used for intraday swings.