james16 Chart Thread

Quoting GeraltofLA

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I am curious what the best way to go about managing risk on a weekly chart is? I know the setups are stronger on higher time frames but its difficult to control risk as sometimes the PA dictates large stop sizes. Granted the R:R remains the same as smaller time frames but requires more capital at risk. Any suggestions on what has worked for others in the past. Possibly dropping down time frames to find better places within weekly bars that a stop could be placed at... Thank you for the help. -Ryan

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Quoting Abe16

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{quote} IMHO multitimeframe analysis is one of the biggest downfalls of aspiring traders. Time frame is fractal so there is no difference between a 1 minute time frame and a weekly in terms of price action. The problem many encounter is expectations. If your going to trade a 1 min time frame then you need to be prepared to accept the limitations of a 1:1, 2:1 or 3:1 R:R within that time frame. This applies to the weekly also. In a weekly chart the R:R in the weekly may demand a large drawdown to meet the desired R:R. Make no mistake R:R is everything....

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Quoting GeraltofLA

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{quote} Thanks for the response. I guess what youre saying is focus on the R:R no matter what time frame you are on. The drawdowns will be different in pips depending on timeframe but as long as you are looking at a good R:R the drawdown is just a factor of the timeframe. 1 min timeframe will have smaller drawdown than the weekly but you just have to accept that on the weekly because your getting bigger moves in pips with similar R:R. I guess its just a mental thing seeing a loss of -100 pips on a trade.

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Quoting GeraltofLA

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{quote} Thanks for the response. I guess what youre saying is focus on the R:R no matter what time frame you are on. The drawdowns will be different in pips depending on timeframe but as long as you are looking at a good R:R the drawdown is just a factor of the timeframe. 1 min timeframe will have smaller drawdown than the weekly but you just have to accept that on the weekly because your getting bigger moves in pips with similar R:R. I guess its just a mental thing seeing a loss of -100 pips on a trade.

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Quoting Abe16

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{quote} You got it! Even if you have a smallish account you can trade a smaller time frame using appropriate R:R. It's actually a good idea to trade smaller time frames so that you can become familiar with price action and learn faster. A relatively new trader who decides to trade a daily or weekly will wait weeks or months for a trade or worse he/she may attempt alternative entries just to get an entry. Smaller time frame PA is the same as HTF PA. No difference. Once you get the PA down then you can trade HTF using strategies you learned on LTF....

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Quoting dan89

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Currently keeping an eye on this one. Not a great one but if we can get up to the 125 level then a play to the downside might be an opportunity. {image} Take care Dan

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Quoting dan89

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Currently keeping an eye on this one. Not a great one but if we can get up to the 125 level then a play to the downside might be an opportunity. {image} Take care Dan

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Quoting GeraltofLA

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Any insight on price behavior with a gap. A gap formed on NZD/USD on my MT4. I am looking for statistics on gap fills or experiences you may have playing gaps that have worked for you. {image}

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