Hey,
Lets take timeframe M1 and timeframe H4.
TF M1 updates every minute, TF H4 every four hours.
At 16:00 for example, TF M1 has on EUR/USD 1.0010, on TF H4 1.0050. Both have different prices at the same time.
Considering I entered long on 1.0000, I want to sell on 16:00.
But I dont understand the following: On TF M1 I have a profit of 10 pips, on TF H4 I have a profit of 50 pips.
In theory why not choose H4 for exit? But this should be impossible because there should be only one price at 16:00.
I know that the TF H4 is lagging, therefore 1.0010 should be the newer price. But again, how can it be newer if it is at the same time? (I know that the price of the TF H4 is about the same as the SMA240 of the TF M1, but the "same time" still confuses me).
-------------------
So to put it simple: If I am using the TF H4 for trend orientation and TF M1 for entering and exiting trades, I can use both prices (they are both valid) at 16:00? So TF M1 1.0010 is really 1.0010 and TF H4 1.0050 is really 1.0050 ... at 16:00 sharp?
Thanks a lot
Lets take timeframe M1 and timeframe H4.
TF M1 updates every minute, TF H4 every four hours.
At 16:00 for example, TF M1 has on EUR/USD 1.0010, on TF H4 1.0050. Both have different prices at the same time.
Considering I entered long on 1.0000, I want to sell on 16:00.
But I dont understand the following: On TF M1 I have a profit of 10 pips, on TF H4 I have a profit of 50 pips.
In theory why not choose H4 for exit? But this should be impossible because there should be only one price at 16:00.
I know that the TF H4 is lagging, therefore 1.0010 should be the newer price. But again, how can it be newer if it is at the same time? (I know that the price of the TF H4 is about the same as the SMA240 of the TF M1, but the "same time" still confuses me).
-------------------
So to put it simple: If I am using the TF H4 for trend orientation and TF M1 for entering and exiting trades, I can use both prices (they are both valid) at 16:00? So TF M1 1.0010 is really 1.0010 and TF H4 1.0050 is really 1.0050 ... at 16:00 sharp?
Thanks a lot