this reply has to do with which time frame to trade. Part of the problem with forex and how indicators are calculated has to do with the fact that certain time intervals are flat - this can also affect trendlines and when they break. 1 hour timeframes may be ok for many signals and during times of consistent high volume they can be dead on. nevertheless, part of the reason that 4hour charts are used is that they filter relatively well these times of little movement into the overall composition of the bar. If one wanted to trade on a smaller timeframe in forex, I believe one of the main filters that one would have to account for is how much activity occured during thos times where price seemed to stall. Nevertheless, we do not have any volume information on such small intervals so this becomes difficult. For this reason, I believe that tick charts are a good start. If one would want to trade the hourlys, look at the average total ticks per day, and divide it by 24, then, use that amount of ticks to build the bar. In times of higher activity, the bar will print faster, whereas moments of inactivity will cause bars much more time to complete. I trade this method on many of my setups, and specifically with this setup, you will notice that false signals are weeded out much better. The reason simply being that at the end of many time periods, there seems to be spike activity. Any system based on close or open of a bar will be affected by these end of hour or 15 or 5 minute spikes. Tick bars though, do not close at those times, they close when that amount of ticks has occured so an entry created by those end of hour or 4 hr or 15 min or 5 min spikes gets weeded out by tick bars. This all of course unless the tick bar happens to close around the same time as the time bar by chance, in which case caution must be taken to make sure the signal was false, or, just dont take the trade. I'm relatively new to this so please accept my apology for the rambling.
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