Hoggums
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Personally - I trade off the 15 min chart (for day trading) - but use the daily and 4hr charts to assess longer term trends and resistance lines.
When I think an entry point is hit I will flip to the 1 min chart to see if this chart has the right "shape" and is trending in the direction I want to trade.
Once a trade is taken I switch back to the 15 min. Too much information overload from the 1min chart. So in answer - I use all timeframes.
Very often if I have some undisturbed time at home I will bring up the 1min dow chart and trade off that 8pm-9pm (UK). Very often there's some great volatility at this time. Here I am looking to catch anything from 20-200 points with a large-ish stake and a tight (manual) stop trading bounces off fshort term resistance/support and/or catching a proportion of big moves. This is trading on the edge though and requires my complete concentration!
I also usually have longer term trades held over days/weeks which I use the 4hr and daily charts for checking at EOD.
When I think an entry point is hit I will flip to the 1 min chart to see if this chart has the right "shape" and is trending in the direction I want to trade.
Once a trade is taken I switch back to the 15 min. Too much information overload from the 1min chart. So in answer - I use all timeframes.
Very often if I have some undisturbed time at home I will bring up the 1min dow chart and trade off that 8pm-9pm (UK). Very often there's some great volatility at this time. Here I am looking to catch anything from 20-200 points with a large-ish stake and a tight (manual) stop trading bounces off fshort term resistance/support and/or catching a proportion of big moves. This is trading on the edge though and requires my complete concentration!
I also usually have longer term trades held over days/weeks which I use the 4hr and daily charts for checking at EOD.
rathcoole_exile
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which TF do the Pit Traders use ?
or do they, perhaps, just use price (especially FTPPs), coupled with volume ?
or do they, perhaps, just use price (especially FTPPs), coupled with volume ?
nine
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Pit Traders are effectively using multiple timeframes. Their primary timeframe is like a 1 tick chart with the chart held in their heads - and as long as their memory skills. Their secondary and tertiary timeframes are probably the equivalent of hourly and daily because they will be holding important support and resistance from a longer term view in mind so that they can assess market reaction at those points (there will be some daily calcs like pivots potentially, and they will recall major reaction points from earlier in the day - perhaps some are prompted by staff as well).
rathcoole_exile
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in that case, surely then multi-TFs = no=tfs !??!
nine
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Thats what I thought until I thought about it.
But a tick chart has no absolute time frame. Nor does a volume or range chart. And yet, we do think of them as having some time frame. It starts to sound a little Buddhist - there is emptiness because the floor traders timeframe does not exhibit independent existence. And yet, we know that on average he will make a trade every 10 minutes ... so is there timeframe or is there not timeframe?
But a tick chart has no absolute time frame. Nor does a volume or range chart. And yet, we do think of them as having some time frame. It starts to sound a little Buddhist - there is emptiness because the floor traders timeframe does not exhibit independent existence. And yet, we know that on average he will make a trade every 10 minutes ... so is there timeframe or is there not timeframe?
rathcoole_exile
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so what is the sound of one hand clapping ?
bbmac
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Whatever time frame you trade from whether it be 1min or 1hr is really irrelevant, in my general experience, best practice leading to the highest probability outcomes come from:
a. Picking a time frame to trade from, use the time frame below as the trigger to fine tune entries, and the time frame above for trend.(factors of 4 to 6 for lower and higher time frames)
b. Favour the trend direction when the trend on your higher time frame is co-existent with that on time frames above that.
c. Define what constitutes a trend and stick to it on all time frames.
d. Know where the potential support and resistance lies in the market and where when breeched to the downside/upside repectively it may then act as resistance/support on any pullback re-test from the other side.
e. Price action indication in the form of candlestick analysis tends to be more reliable on the higher time frames.
f. If trading against trend (@ potential supp/res,) particularly when strong and co-existent with any trend on time frames above that you have designated as your higher/trend time frame, be aware that it is more likely to be a pullback not a complete reversal.
a. Picking a time frame to trade from, use the time frame below as the trigger to fine tune entries, and the time frame above for trend.(factors of 4 to 6 for lower and higher time frames)
b. Favour the trend direction when the trend on your higher time frame is co-existent with that on time frames above that.
c. Define what constitutes a trend and stick to it on all time frames.
d. Know where the potential support and resistance lies in the market and where when breeched to the downside/upside repectively it may then act as resistance/support on any pullback re-test from the other side.
e. Price action indication in the form of candlestick analysis tends to be more reliable on the higher time frames.
f. If trading against trend (@ potential supp/res,) particularly when strong and co-existent with any trend on time frames above that you have designated as your higher/trend time frame, be aware that it is more likely to be a pullback not a complete reversal.
