Mornington Crescent
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one other issue which hasnt been mentioned
if you trade off 4hr charts then the assumption is that you have to be in the market overnight.
trading off shorter time frames avoids the overnight exposure.
different horses for different courses ?
if you trade off 4hr charts then the assumption is that you have to be in the market overnight.
trading off shorter time frames avoids the overnight exposure.
different horses for different courses ?
Over the Top
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DoubleSix, overnight is less of an issue on FX.
wasp
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Hi Commanderco,commanderco said:
Maybe you should take some time out of the market and T2W yourself and think about your risk and money management mate. Whether its 1 lot or 1 thousand, if you can't place a trade without trembling knees maybe you shouldn't be in the market right now?
Iqbal,
I use S/R from where ever it may be, I don't use specific times or end of days or weeks, just where I see it will exist regardless. There are days/dates on the chart but trading a larger TF I don't give them much thought.
DoubleSix,
Just like OTT says, trading FX on a much larger time frame makes overnight a non issue really. Yes, market direction may change but generally a trade runs over 2/3 days so anyhting in the dead of UK night can be corrected in the morning if need be.
Livermore,
I try not to make opinions of the overall trend etc, I just trade the next few hours ahead of me. I'm out of the market just now as all my criteria for a good trade is not there so I will wait for tomorrow.
Chris
Does anyone trade of larger TF's?
4hr time frame is good, 8hr TF is better. In the down market on Euro, Cable, it's 5-7(sometimes more) candles down and 3-4 candles up. You capture twice the profit of a weekly trader.
The economic news effects the Forex like a bump in the road. The market zooms around a bit and settles back to where it was on the trend. It would only give concern if the economic news came at the reversal point and then you've already taken the other direction, right?
A $500 reserve / contract on the mini would be enough to sustain this strategy and max your return.
The economic news effects the Forex like a bump in the road. The market zooms around a bit and settles back to where it was on the trend. It would only give concern if the economic news came at the reversal point and then you've already taken the other direction, right?
A $500 reserve / contract on the mini would be enough to sustain this strategy and max your return.
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Mornington Crescent
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OTT/Chris
you dont think overnight exposure is a problem ?
perhaps I have been trading longer than you.
you dont think overnight exposure is a problem ?
perhaps I have been trading longer than you.
It is only a problem when the market is about to shift anyways.
Lately Cable has been choppier than normal. I've kept a closer watch. 8hrs chart is still the best. I use stochs 7,2,3 and 14,4,6 and macd 12,26,9
When 3 line up it's major top or bottom when 2 line up it's an op for a slight reversal, but not a break in trend
When you trade shorter periods you might make a little more profit, but isn't your free time and well being worth more than the 100 pips / wk you might make extra?
Lately Cable has been choppier than normal. I've kept a closer watch. 8hrs chart is still the best. I use stochs 7,2,3 and 14,4,6 and macd 12,26,9
When 3 line up it's major top or bottom when 2 line up it's an op for a slight reversal, but not a break in trend
When you trade shorter periods you might make a little more profit, but isn't your free time and well being worth more than the 100 pips / wk you might make extra?
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Over the Top
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I thought we were discussing 4hr charts in the context of this forum which is specifically FX. There isn't really any overnight to consider. Weekends, sure.DoubleSix said:
And yes there is an 'official' EOD at 17:00 EST, but it's hardly the same as a session end in exchange traded instruments.
Over the Top said:
overnight to me is when I am asleep and there-fore not in a position to monitor the market.
I suppose exposure with the longer time frame is a problem, but I think the point Chris is making is that you factor this in to your r/r ratio, ie you win some, you loose some but overall you end up even on the exposure score.
wasp
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ST or LT?
Morning Twalker,
Here's how I view the difference between the two time frames personally.
The factors that I consider first are;
1. Less noise
2. Larger moves
Working purely from price and S/R (no patterns except as second confirmation) I see the same sort of signals and opportunities from both TF's. I personally prefer to be in a trade up to 3 days and catch a larger move.
My other consideration is how long I can extract myself from the screen and how long each trade will take. I feel more comfortable going to sleep with an open position on a 4hr chart as Its only 2 candles and my picture is much larger and therefore should take longer to form, giving me a better rest.
Of course this is not always the case but if it goes against me over night, so be it. But it will/should be less likely. This is all factored in to the R/R and risk% so fear is not an element.
It is of course 'each to their own' and your style, methods and goal. 4hr works great for me but others find 1 hour or 8 hour better. I know I wouldn't change though! :cheesy:
Chris
Morning Twalker,
Here's how I view the difference between the two time frames personally.
The factors that I consider first are;
1. Less noise
2. Larger moves
Working purely from price and S/R (no patterns except as second confirmation) I see the same sort of signals and opportunities from both TF's. I personally prefer to be in a trade up to 3 days and catch a larger move.
My other consideration is how long I can extract myself from the screen and how long each trade will take. I feel more comfortable going to sleep with an open position on a 4hr chart as Its only 2 candles and my picture is much larger and therefore should take longer to form, giving me a better rest.
Of course this is not always the case but if it goes against me over night, so be it. But it will/should be less likely. This is all factored in to the R/R and risk% so fear is not an element.
It is of course 'each to their own' and your style, methods and goal. 4hr works great for me but others find 1 hour or 8 hour better. I know I wouldn't change though! :cheesy:
Chris
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Cracking thread this one, very helpful
I was actually searching the web for this topic, because although ive read many books etc. no-one specified why they used the timeframes they do.
seems it doesnt really matter, but less time + bigger hits from long trades and lots of low profits, but more time in front of the screen for short ones.
I was actually searching the web for this topic, because although ive read many books etc. no-one specified why they used the timeframes they do.
seems it doesnt really matter, but less time + bigger hits from long trades and lots of low profits, but more time in front of the screen for short ones.
commanderco
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chrisw said:
What is your Broker charging for your day margin and your overnight margin?
SvenFoster
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I've heard millions of times(on these boards) that in FX Daily, 4HR and 60MIN are the TF of choice for the banks. maybe its true, maybe its not.. but TF's should surely be chosen for their characteristics and how they fit into your personality/style I don't think cost/account size is a good enough reason these days(we can all find a broker that allows flexible/mini lot sizes)
As for ...
1) overnight risk.
Information comes in all day every day, disasters happen sure but most news is scheduled. Most action happens London/NY sessions and out of these often little or no movement occurs.
2) overnight margin.
I'm assuming your talking futures as I'm not aware of an overnight margin differing to margin
3) financing cost
Most have a daily rollover, some don't. O+A charge interest by the second... is that good? or bad?. Good if you only trade with the carry. Long term trades like long cable, short euro would both pay interest as well as the pips. Since they typically move together choose one when a long shows itself and the other when a short turns up if it bothers you.
4) economic news
If your looking for big pips on trades lasting 3 days then news is unlikely to concern you unless opening a new postion. As someone stated I would imaging using the 4hr more often than not the news will confirm you postion.
longer....
less noise, fewer trades, less volitility, bigger moves, smaller costs,?bigger stops?, candles more meaningful, S/R more weight?
shorter...
more trades(less daily variation of P/L?), more volitility, higher costs,smaller moves?, stops.
each TF has its own noise, volitility, followers and trades... for each good reason theres one for another TF so its got to match your style.
(Ps: one last thing, how come the 60 min looks just like the 4HR if you scrunch all the bars up
The noise seems less important
As for ...
1) overnight risk.
Information comes in all day every day, disasters happen sure but most news is scheduled. Most action happens London/NY sessions and out of these often little or no movement occurs.
2) overnight margin.
I'm assuming your talking futures as I'm not aware of an overnight margin differing to margin
3) financing cost
Most have a daily rollover, some don't. O+A charge interest by the second... is that good? or bad?. Good if you only trade with the carry. Long term trades like long cable, short euro would both pay interest as well as the pips. Since they typically move together choose one when a long shows itself and the other when a short turns up if it bothers you.
4) economic news
If your looking for big pips on trades lasting 3 days then news is unlikely to concern you unless opening a new postion. As someone stated I would imaging using the 4hr more often than not the news will confirm you postion.
longer....
less noise, fewer trades, less volitility, bigger moves, smaller costs,?bigger stops?, candles more meaningful, S/R more weight?
shorter...
more trades(less daily variation of P/L?), more volitility, higher costs,smaller moves?, stops.
each TF has its own noise, volitility, followers and trades... for each good reason theres one for another TF so its got to match your style.
(Ps: one last thing, how come the 60 min looks just like the 4HR if you scrunch all the bars up
The noise seems less importantThe type of chart you use is only relevant for your trading strategy and hence there are no right or wrong answers. Personally, I only use the hourly as it gives me the best of both worlds in terms of noise and "reliability" of signals. It suits my strategy well, so thats the main reason for me using it.
