Some strategies work in large time-frames, some works in medium-sized time-frames and some in small time-frame. What will make these strategies to be like this?
e.g. Assuming we have a strategy entry point is happening a Cross on two lines on {indicator on candlestick window like a cross in Moving-averages or in indicator-screen below candlesticks window like a cross in MACD(x,y,z)}
What will define that if cross happens in 1-Month time-frame, this is entry or if cross happens in 1-Min time-frame? If above is not clear, please ask for further explanation.
I’m not entirely sure I understand the question. But let me try anyway.
The shorter the time frame the more susceptible you are to market noise. And I personally am of the opinion that any indicator (be it moving averages or other and in spite of some being more useless than others) is more reliable on the daily time frame than on any other shorter time frame. But this coming from someone that does not trade FOREX and only trades on the daily time frame and whose trading probably falls into the category of long(ish) term trading i.e. I don’t trade intra day. Not much help to you I don’t think.
Classic TA theory suggests highly liquid market behaviour where there is unconstrained access is fractal-like, so all TA-based strategies will have the same outcome when adjusted for the time-frame’s scale.
However, forex market access is constrained through the 24 hours, which makes for variable volume and which affects volatility if only when it comes to price spreads. So its unlikely that buying at 1 minute before the NY close with a target trade duration of 20 minutes will have the same range and probabilities of outcomes as buying on the 29th of any month with a target trade duration of 20 days.
For short term trades I think something like ability to finish or to continue again current trend and ability to fix some profit or loss as quick as possible. Will not tell you how much it will be for something like long term really, simply because not sure of that.
