Hi all,
I have some years of experience in investing in stocks; a couple of years ago I started to explore the more speculative side of swing and daytrade.
Quite recently the tech support of 2 of my charts providers and brokers started to explain me to stay away from short timeframes 1/5 minutes and focus on moderately longer charts, in particular the 12h.
The argument is that high frequency institutional trading can affect way less this timeframe. True, there are day / weekly and 8h charts, but these guys keep on pushing the 12h.
The other argument is that 12h doesn't get affected by daily / weekend gaps, I'm quoting the explanation:
" so the 12H lets you know hey i’m getting to the 11:59am once that closes that give me a strong indication that I need to be net short or net long for the next hour or 2, and very likely within few minutes you will have you 10 cents gain and you'll be out. If you thought trading was about taking home 1k or 300 a day I think your setting yourself up for failure and false expectations, trading is about small gains over long course of time.
12 H chart divides so trader can see if after 11:59am you running up into resistance or falling into support after 12pm etc "
Whilst I get the concept, what I don't get is that after the after market the candles don't move anymore, and the following day , during the pre market, anything can happen and it's still beyond our control.
I tried to look for online knowledge on 12h charts applied to stocks but I haven't found anything, just general definition.
Any input is welcome, thank you!
Alex
I have some years of experience in investing in stocks; a couple of years ago I started to explore the more speculative side of swing and daytrade.
Quite recently the tech support of 2 of my charts providers and brokers started to explain me to stay away from short timeframes 1/5 minutes and focus on moderately longer charts, in particular the 12h.
The argument is that high frequency institutional trading can affect way less this timeframe. True, there are day / weekly and 8h charts, but these guys keep on pushing the 12h.
The other argument is that 12h doesn't get affected by daily / weekend gaps, I'm quoting the explanation:
" so the 12H lets you know hey i’m getting to the 11:59am once that closes that give me a strong indication that I need to be net short or net long for the next hour or 2, and very likely within few minutes you will have you 10 cents gain and you'll be out. If you thought trading was about taking home 1k or 300 a day I think your setting yourself up for failure and false expectations, trading is about small gains over long course of time.
12 H chart divides so trader can see if after 11:59am you running up into resistance or falling into support after 12pm etc "
Whilst I get the concept, what I don't get is that after the after market the candles don't move anymore, and the following day , during the pre market, anything can happen and it's still beyond our control.
I tried to look for online knowledge on 12h charts applied to stocks but I haven't found anything, just general definition.
Any input is welcome, thank you!
Alex
