DislikedI know that we are all plotting trend lines, divergence, and doing other technical analysis, but when you say that you are looking for each the timeframes to be “in agreement”, what do look for?Ignored
QuoteDislikedRight now, I use the old THV T3 and Hull Replace on the 1 and 5 min. I only look for shorts on the 1 min when the T3 is below the Hull Replace AND the new THV TRIX lines are both red (fast TRIX under slow TRIX) on BOTH time frames. Is this TOO conservative and am I missing the whole point of the simplified THV version 3. This does yield fairly safe trades – but I leave tons of pips on the table. I marked just one example on the 1 and 5 min charts to show this agreement.
But I am curious what you are doing. Do you have another suggestion...
The price moves (in average, and based on the slowest markets as Asia) 10 pips every 5 minutes, then reverses, then again, etc... even in a tight channel as we might have seen (barely 15-20 pip ranges).
On a 1 minute chart, you can't expect much more per trade unless the pair starts trending (which seldom occurs in Asia), or unless you stay in the trade by managing your stops and watching the higher TF (M5). Especially if your entry is conservative.
However, in more volatile market conditions, trades can yield a better return. So maybe you would have to settle for better trading conditions, like in Europe/NY markets, where a conservative entry will not hamper the evolution of the trade.
But I'll repeat: what really matters is how much safe your trades are, and how many pips you didn't lose. There are thousands of pips of the table (and many more if you consider all the pairs that are moving at the same time). Cherish the ones the market is willing to give you, there is always plenty of opportunities throughout the day.
I used to look down on scalping because it seemed to me that one couldn't have much results out of 2-3 pips trades. The funny part is that as soon as it didn't matter if I left pips on the table (and I leave a LOT!) I started having awesome results through the sum of all those insignificant little trades which I despised in the past...
Edit: in fact, if the entry had been taken on M5, you should have entered in the next candle after your vertical line, after it was confirmed that the one you're signaling is effectively out of the cloud... so if based on M5 you would have entered 10 pips lower than on M1, where the conditions were met one minute earlier at a better price...) That trade looks as an average 30 pips trade which is really excellent if scalping.