DislikedDon any thoughts or self reflection questions you would ask to really see if you view the market as ONE market? I would say that I do, logically all the chart time frames aren't different markets but I wonder if I'm biased and don't really view it as such. I use terms or mark my charts with "weekly buy level" or "daily short", I'm really just saying that those levels are best seen or at least the time frames where I see them best. Often times, maybe always, I feel my "bias" can cloud my vision or maybe makes me feel like I'm not seeing the market...Ignored
Your practice of using different points of view to guide you in a trading bias, is correct (in my opinion). The only question I would ask of you is, "how do you resolve a conflict of differing points of view?" Using the concept of "one market", which I strongly believe, one must ask the question, "what is more likely to happen?"
While it may be easy to say to trade with the larger picture, that is not always correct. Again, I do NOT believe that the larger time frames "drive" the market. In fact just the opposite. I believe that the tick charts eventual construct, the larger charts we all look to for guidance. Keeping in mind that we are NOT technical analysts we must learn to watch the order flow. Yes you heard that correctly. This is NOT "technical analysis". We do not use any such "tools", with the possible exception of price itself (divided into time frames).
This is the major reason, I no longer place an order "out in space". I have "areas of interest" as you do, where I look to or expect a change in the order flow. But I wait to actually see that change take place. So, if I am expecting a buy in a certain area, I look for changes that indicate buying dominance... Obviously price will have to reach that area, and on smaller time frames those trading that smaller time frame will have a bias opposite of mine...for me this is good, because it provides the liquidity I need to transact. But if I am surprised...as I often am, because price didn't do what I was expected, I look at all the time frames across where I see (you would call it a change in structure), and see if that fits the order flow I was expecting. If it does NOT, I do not transact, or I wait to see if the order flow changes as expected a little later...(perhaps I was early).
However, if things are just too confused to understand, I move on to another market and let that go for awhile. Like a month or so. Often time as well, when go to a larger time frame, it becomes clearer, and it usually shows a larger balance zone, that looks chaotic on the smaller time frame.
So bias is OK. But if you have a conflict in your bias, you need to find a way to resolve that conflict. For me that usually means I am looking at too small a picture. However, being one market, your first clue that something is not right will show up on the smaller time frames...before they even register on the larger ones.
Does this make sense?
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