does downgrading to lower timeframes leads to much more profits ?

[the hare]

45 degrees

 

[Lee Shepherd]

in T.A there is only two kind of trends , 1>ordinary trend with successive higher highs & higher lows 2 >accelerated trend (rapid price move with at least 45 degrees angle ).the first one occurs 30 % of time in ANY timeframe.for example if you observe a year on daily bars,on average ,30 % of time it is trending . if u see a trading day on 5 minute chart, on average, 30 % of time it is trending too.the fact that u said is not in contrast with what i said.

Interesting point about the 45 degree angle, again this is (sorry) useless. It depends on how much data you have on the screen to get the pitch and naturally what charting package/provider you use.

A simple example of this is zoom out 1 click and it pitches higher, zoom in and it reduces etc. How much data is present is dependent on pitch. I won't show any examples as we all have chart access here and we can all do this simple exercise.

In answer to the question in hand: the answer is no. Obviously if it were true then all the big boys would be trading lower time frame and no positions would ever be held. It is true however that markets will range more than they trend but again depends on how much data you use and on what time frames.

Regards,

Lee

 

[the hare]

Blue Line Jumps 11 Percent | The Onion - America's Finest News Source

Reames also warned that the upward angle of the line, which most analysts agreed was approximately 80 degrees, may have been exaggerated by the way the graph was drawn.

"The stuff that's written along the bottom of the graph is all squished together, making the line look a lot more impressive than it is," Reames said. "Had that same stuff been spread out more, the line would have looked a lot less steep."

I think we need a bigger lulz boat

 

[DionysusToast]

Price is the same no matter what time frame you are looking at (or chart type). Your interpretation of what is happening is what's important.

Peter

+1

Where's it been, where's it going?

As a day trader, I use a timeframe where I can see the end of the last day and the morning of the trading day on the chart. I only trade mornings (Eurex, then US). So on the Bund, it's about 3-400 on the ES about 7-800 (ticks).

If I went too low, I wouldn't really have any clue what the bigger picture was. If I went too high, I wouldn't see the major intraday moves. within the extremes, doesn't matter.

So a swing trader using a yearly chart would probably be screwed but a daily vs a 4 hour - can't see how it would matter,

 

[DionysusToast]

Because it isn't even true. It's just vague and unhelpful. It can be trending for one person (who is looking at a particular timeframe) and ranging for another. So which is it doing? Trending or ranging?

that kind of statement can only have some meaning when you clearly define what it means to be trending (and your definition may be different from others).

Might be helpful if you saw the market as being in 'price discovery mode' and then 'trading around value' mode.

Sort of like if oranges became more popular, the prices would shoot up and eventually level out. People wouldn't stop buying oranges totally as the price shot up but there would be prices up above where enough people backed off to see demand fall off, there would be prices down below where enough people jumped on to see demand increase. Price would go back and forth between these levels until some driver moved them up/down again.

You'd see the moves up as discovery and trade them accordingly, then - like on the ES right now, you'd see a pullback as having the potential to establish a new 40, 60,70 point range that we could trade around for a month or two before going into price discovery mode again.

I think the 70/30% rule is a bit suspect but I think that expecting a range after a period of price discovery helps you with defining scenarios that could play out and then trade off them.

 

[Commodity_Trader]

Interesting point about the 45 degree angle, again this is (sorry) useless.


In answer to the question in hand: the answer is no. Obviously if it were true then all the big boys would be trading lower time frame and no positions would ever be held. It is true however that markets will range more than they trend but again depends on how much data you use and on what time frames.

lee, one of my favourate trend following setup is price trading & then pull back above gann 45 degrees ,and i wait for break high of that pullback , i am trading this system at least 3 months with real money and i have positive results on that , while only i have 30 % hit rate, but my gain is much more than i loose .so it is not useless , every single idea in trading is valuable as long as u can cut your losses short & let profits run.

dont u think the big boys dont trade lower timeframes because they have big capitals or it's just because trading in lower timeframe is a total loss ?

As a day trader, I use a timeframe where I can see the end of the last day and the morning of the trading day on the chart. I only trade mornings (Eurex, then US). So on the Bund, it's about 3-400 on the ES about 7-800 (ticks).

If I went too low, I wouldn't really have any clue what the bigger picture was. If I went too high, I wouldn't see the major intraday moves. within the extremes, doesn't matter.

So a swing trader using a yearly chart would probably be screwed but a daily vs a 4 hour - can't see how it would matter,

tnx for great hint

Might be helpful if you saw the market as being in 'price discovery mode' and then 'trading around value' mode.

Sort of like if oranges became more popular, the prices would shoot up and eventually level out. People wouldn't stop buying oranges totally as the price shot up but there would be prices up above where enough people backed off to see demand fall off, there would be prices down below where enough people jumped on to see demand increase. Price would go back and forth between these levels until some driver moved them up/down again.

You'd see the moves up as discovery and trade them accordingly, then - like on the ES right now, you'd see a pullback as having the potential to establish a new 40, 60,70 point range that we could trade around for a month or two before going into price discovery mode again.

I think the 70/30% rule is a bit suspect but I think that expecting a range after a period of price discovery helps you with defining scenarios that could play out and then trade off them.

this idea seems true, & paul levine had the same beliefs about market . he believed price move is a series of interchangeable resistance and support levels that they change into each other .....as after end of trend usually there is a range bound so it would be to some extend helpful .can u tell me what do u think about 30 /70 & whats seems more realistic to you ?