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For confirming reversals in lower time frames

  • Post #1
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  • First Post: Feb 16, 2011 2:58am Feb 16, 2011 2:58am
  •  efiler
  • | Joined May 2008 | Status: Member | 69 Posts
Does trading reversals in lower timeframes need more technical confirmations than in higher timeframes?
  • Post #2
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  • Feb 16, 2011 3:30pm Feb 16, 2011 3:30pm
  •  pdean123
  • | Joined Sep 2006 | Status: Member | 181 Posts
Quoting efiler
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Does trading reversals in lower timeframes need more technical confirmations than in higher timeframes?
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What are you considering a reversal? An actual change of trend? Obviously lower time frames have a more visibly fractal nature. But then, what are you considering a trend? One thing that many traders should try to do is trade in the direction of the trend and find a signal that tells them with accuracy when that has occurred. I find that RSI Reversals do this quite well. They do not signal a reversal of the trend but a reversal of the retracement which means that the trend is now moving again. The reason this is important is that this means momentum is with the trader which means less price resistance.
 
 
  • Post #3
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  • Last Post: Feb 17, 2011 7:53am Feb 17, 2011 7:53am
  •  Poundfreak
  • | Joined Feb 2011 | Status: Junior Member | 3 Posts
I'd read forex e-book once and i forgot which book already, but i remembered one thing, that the book said that more higher the time frame less false signal occur, so i think for reversal pattern, better look at more higher timeframe for confirmation.
 
 
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