Timeframe Question

[Doomberg]

Ok this is a question i feel i could do with asking as its baffling me.

When it comes to technical analysis of charts, how do you decide on which time frame may be most truthful if they conflict each other? For example, i just seen a nice double top and Bollinger break on the EUR/USD 5m Charts and shorted, its going in my favour but when put the charts to 10m time frame the SP is actually 20 pips below the Bollinger and it just doesn't look any way near as good as an entry...

Whats your views on this, how do you decide if they conflict?

Thanks

 

[kimo'sabby]

Ok this is a question i feel i could do with asking as its baffling me.

When it comes to technical analysis of charts, how do you decide on which time frame may be most truthful if they conflict each other? For example, i just seen a nice double top and Bollinger break on the EUR/USD 5m Charts and shorted, its going in my favour but when put the charts to 10m time frame the SP is actually 20 pips below the Bollinger and it just doesn't look any way near as good as an entry...

Whats your views on this, how do you decide if they conflict?

Thanks

Start big 'n move down. Never read the book backwards.

 

[TheBramble]

Incredible.

 

[DashRiprock]

Start big 'n move down. Never read the book backwards.

lol I would say exactly the opposite.

Think of a weather forecast. You can tell what the weather will be like in the next 5 mins or so by lookin out the window. What will it be like tomorrow? Fk knows.

 

[Pat494]

Ok this is a question i feel i could do with asking as its baffling me.

When it comes to technical analysis of charts, how do you decide on which time frame may be most truthful if they conflict each other? For example, i just seen a nice double top and Bollinger break on the EUR/USD 5m Charts and shorted, its going in my favour but when put the charts to 10m time frame the SP is actually 20 pips below the Bollinger and it just doesn't look any way near as good as an entry...

Whats your views on this, how do you decide if they conflict?

Thanks

I take this as a sign that there will be oscillations of prices NOT trending
although TFs ought to be near

 

[kimo'sabby]

Biggest cycles are strongest.

 

[TheBramble]

Biggest cycles are strongest.

???

You're trading the TF you're trading.

If you're going to be influenced by other TFs, look down the track at what's coming, not up the track at what's passed.

 

[theroguetrader]

you could be using a 30 min chart, see a large move upwards, " jump " on board - only to see the price come crashing down into the daily close - why ? - because a pin had formed on the DAILY chart -

use a higher timeframe as the anchor chart - to get the trend
and use just take trades, either up or down - in the direction of THAT trend - because they will have the highest " probability " of working out -
there is no " truthful " chart - if someone trades off a 5min chart and another person trades off a 1 hr chart or a 1 day - its the SAME CHART - just in different time periods !!

but the signal for the entry will be more " RELIABLE " if its taken on a BIGGER timeframe - because the time period is WIDER .. !!

 

[TheBramble]

I can't take any more.

 

[BeginnerJoe]

Don't worry about it. Profit is right, chart is wrong.

 

[TheBramble]

The chart is never wrong. But I can't see any benefit in looking at the Daily when you're trading the M15.

 

[TheBramble]

Don't get me wrong - I used to spout all the same old bollox myself when I thought that was how it was done. I heard and read that everyone else was doing it so I figured it must be right and I started spouting it too. Not tried. Not tested.

But when you actually get down to trading, you realise it is an intensely personal and specific endeavour, and what works for others may not necessarily work for you. Or anyone.

For many of the Old Truths, I’m left now wondering if anyone who ever spouted them actually traded themselves. Give them the benefit of the doubt in that, as I said above, we’re all different and what makes sense to them or you, may not, probably won’t, for me.

 

[spreader_legger]

Takes time for a hurricane to build up strength though

lol I would say exactly the opposite.

Think of a weather forecast. You can tell what the weather will be like in the next 5 mins or so by lookin out the window. What will it be like tomorrow? Fk knows.

 

[the hare]

For many of the Old Truths, I’m left now wondering if anyone who ever spouted them actually traded themselves..

Maybe they where just doing it for lulz (I know one or two who admitted it when called). There's quite a lot of deliberate misinformation posted on forums, but who cares as long as you get a few laughs.

 

[BeginnerJoe]

Misinformation is primarily sold to the players by the house. It's just business.

 

[the hare]

Misinformation is primarily sold to the players by the house. It's just business.

And long may that state of affairs continue

 

[TheBramble]

Takes time for a hurricane to build up strength though

Doesn't that rather support Dash's sentiments?

You don't look at a hurricane hit town and decide there's a higher probability of a hurricane hitting that town.

You look at where the pressure systems are starting to indicate a potential for a hurricane to form. And its location. And its direction. And the speed it's moving.

I don’t believe it. I’ve started using weather analogies….The energy draining from my soul as I type. I don’t think I have much left or can last much longer. Eyesight growing dim…..

 

[glyder]

Doomberg,
Alexander Elder uses a factor of 5 (or is it 6?) below and above the TF you are trading - eg trading the 30 min look down to 5min and up to 4, or something. Maybe that approach will help.

I use the bigger picture to get a general idea of space ahead and below.. That might be cos I used to trade dailies and 4 hours so I'm used to them.

I now trade much shorter TF and still look both up and down to see best entries and targets.

In the end, its all a matter of energy and movement rather than specific TF.
Brambles right nothing works for everyone. The same thing dont always even work for the same person either.
I kept looking at charts and over the months and years (and years!) I see what repeats over and again. Its the same patterns and activities on all the TFs. Each pattern has a smaller pattern within.

 

[TheBramble]

Maybe they where just doing it for lulz (I know one or two who admitted it when called). There's quite a lot of deliberate misinformation posted on forums, but who cares as long as you get a few laughs.

There is a little of that, so I'm told, but no, I was thinking of the more mainstream textbook-speak that gets bandied around without any experience or empirical validation by those doing the spouting.

And, the real joke, is that the less knowledge they have on the topic and the less experience they have using the concepts espoused, the more vehemently they seem to defend their assumed position from attack by those that have tested it and found it wanting in one or more ways with specific regard to their own personal style of trading.

Take a ’classic’ work by a ‘classic’ trading author: Intermarket Technical Analysis by John J. Murphy. Written in 1991 it is regarded as a seminal work on “trading strategies for the global; Stock, Bond, Commodity and currency markets”. I’ve quoted from this book myself in the past and some of it is still useful. But the markets 20 years on do not conform so closely, and in some areas, no longer at all. The correlations of type and time are substantially different even where they do retain a vestigial connection to their prior correlations.

I may be a little too much biased toward challenging dogma for the sake of it, but that’s part of my nature, not just in trading, and I feel a robust challenge to any and all perceived wisdom does no harm at all.

As I type this I have no recollection of whether I’m responding to a R:R thread, a TF thread or any one of the currently more active threads that all seem to be chasing each others’ tails. I really am burning out.

 

[JRP2891]

Ok this is a question i feel i could do with asking as its baffling me.

When it comes to technical analysis of charts, how do you decide on which time frame may be most truthful if they conflict each other? For example, i just seen a nice double top and Bollinger break on the EUR/USD 5m Charts and shorted, its going in my favour but when put the charts to 10m time frame the SP is actually 20 pips below the Bollinger and it just doesn't look any way near as good as an entry...

Whats your views on this, how do you decide if they conflict?

Thanks

Terry Crawley, the biggest LIFFE local of his day, used daily charts as a 'scalper'. Interesting read:

https://www.thelfb-forex.com/content.aspx?id=34428&blogid=866