Why do you trade lower time frames?

[Paul71]

By lower time frames I mean 1 hour charts and below.

In my (still limited) experience, price movements seem to conform to price targets (i.e support/resistance, fibs) set on 4 hour/daily and to a certain degree, weekly charts. The lower time frames seem to be a lot of smaller up/down movements as they slowly move to these targets that have been set on higher time frames. From a beginners perspective, it would appear that more/bigger traders are moving price based on daily/weekly patterns and day traders work, riding the ups and downs that playout within these larger movements, but ultimately are guided in the direction of these larger movements. Would that be a correct analysis?

I suspect traders on these lower time frames trade largely based on lesser S/R levels that can be found on them but at the same time always having in the back of their minds the price target set on a higher time frame? I would also suspect candle formations play a big part on lower time frames. Would this be right?

Obviously I’m not saying the lower time frames are a waste of time as there are many people that trade them successfully, and prefer to do so for whatever reason. That is what I’m interested to find out.

A few conclusions I’ve come to myself include:

1. Different instruments lend themselves better to different time frames. Admittedly I’ve only really looked into stocks. Perhaps forex, futures, indices are more tradable on intraday time frames than they are on the higher ones?

2. Do lower time frames simply suit a specific type of trader mentally due to seeing results quicker. Or do lower time frames satisfy a need to trade often? Maybe for thrills?

3. Is there an ability to make more money trading lower time frames taking advantage of the many more up/down movements that you would otherwise not see on the higher time frame charts?

4. Scalping?​

Please add to this or correct where appropriate. Why do traders like to trade lower time frames?

Thanks

Time and leverage, it's that simple. You want to trade, you pick your TF and you leverage in accordingly. One market or multiple markets, at the end of the day you need results, positive results, otherwise it's a savings account, because at the eod it's got to be worth it.

So it's a case of what ever suits the individual, and not what's right or wrong to some other fcuker.

 

[pengeshark]

I trade like to trade on lower time frame charts like 15 and 5 minutes because it allows me to trade with a larger position size and also in instruments I would not be able to trade on higher time frames because of my money management rules, things like copper or crude oil because my stop loss and the technical method I use setting it would be too far away from my entry and my account size would not allow me to take the loss. I always trade with a stop and determine what position size I will use by calculating the difference between my entry and stop loss. For me this means that it can be no greater than 1% of my total trading account (a loss). I like to trade chart patterns like 'Descending Triangles' and on a daily chart the point I would have to place my stop loss would be much further away than a descending triangle on a 5 minute chart, so on a 5 minute chart I can increase my position size. I still always look at higher time frames to confirm my setup requirements.

 

[sjrider2397]

I trade very well on volume charts not time frames. My chart is 2250 volume bar chart for the es emini. sometimes that is a candle every 25 seconds and sometimes it take about a minute. On the other hand I do not do very well at all, in fact I lose money when I trade on hour chart or even a 15 minute chart, I could not imagine a daily chart, lol. Point is pick the time frame that works for you and stick with it.

 

[alan5616]

I trade very well on volume charts not time frames. My chart is 2250 volume bar chart for the es emini. sometimes that is a candle every 25 seconds and sometimes it take about a minute. On the other hand I do not do very well at all, in fact I lose money when I trade on hour chart or even a 15 minute chart, I could not imagine a daily chart, lol. Point is pick the time frame that works for you and stick with it.

At one time I traded the mini Russell using bars of 233 ticks. I started with IB's data but, found this to be inadequate. When I switched to a dedicated data provider, I noticed a big difference in the speed of the price transmission. As a consequence, I had more bars on my chart and was able see trading opportunities earlier. I would often use a 233 tick, plus 500 and 1,000 volume charts as well.

Now that I've switched to forex, my present data provider and software can't replicate the same charting environment that I had when trading the Russell. Such a shame