Question on Time Frames.... | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Using Two/Three time frames - practical meaning. 5 replies

Importance of longer-term time Frames 6 replies

Time Compression Trading: Exploiting Multiple Time Frames in Zero Sum Markets 9 replies

Importing and viewing indicators from other time frames on one chart (time frame) 4 replies

Time Frames. Big picture vs. Timed entry 4 replies

Attachments: Question on Time Frames....
Exit Attachments

Question on Time Frames....

  • #21
  • Apr 28, 2007 2:59pm Apr 28, 2007 2:59pm
I always think looking from the higher timeframe charts to the lower timeframe charts will cause you to miss the early move, but at least its keeping you inline with the direction of the trend. The reasoning is that if the 4 HR showed price heading down, that meant you had to wait for four one hour candles (each 1HR bar = 4HR), eight 30 minute candles (each 30M bar = 4HR), etc.... to tell you that. Now, let's hope by the time you get in, the trend does not start changing.... No matter what, when you want to enter, look at the lower timeframe for a good entry price...
  • #22
  • Apr 28, 2007 3:15pm Apr 28, 2007 3:15pm
Quoting KudzuFX
Hi Bund,
I don't ignore the Stochs. They are a key indicator to tell you more about momentum than the standard OB/OS interpretation. Just because it may show OB/OS on one timeframe doesn't mean that price has necessarily lost momentum. Stochs are great to use especially when you use them on MTFs. Take at look at Spuds thread on stoch. He gives a simple and very practical application of Stochs. Best I've seen.
http://www.forexfactory.com/showthread.php?t=22105


You can also try
http://www.forexfactory.com/showthread.php?t=13321

and
http://www.forexfactory.com/showthread.php?t=20975

Hi kudzuFX,

Many thanks for taking the time to pass on this info I will look at these threads and see if I can improve my understanding
  • #23
  • Edited 4:06pm Apr 28, 2007 3:41pm | Edited 4:06pm
Quoting bundubill
As a raw newbie I am following this discussion with great interest but the indicator which confuses me most is stochs. Over the past few days I managed to make a few pips on cable but could have made many more had I ignored the stochs which were telling me the pair was overbought/oversold when my other indicators were telling me to buy/sell. When is it safe to ignore stochs and when is it important not to ?
===============================================

THERE are many very good traders who do not enter a position until the stoch or RSI breaks into overbought, knowing that a signal can remain in overbought for a very long time.

your sell signal is when the stoch or RSI breaks down thru its overbought lines(70 or 80, depending on your preferences), not while its still in it

Now given that the stoch is an excellent tool for present moves, it in no way shows you trend or where the currency can be expected to be going in the future, which is a function of accumulation/distribution, average true range and the weighted TSI, with momentum thrown into the mix as a spice !

the stochastics job is to show "strength" of the move, and candle (or small group of candles) by candle it does a very nice job, but it simply was never designed to show how to trade a trend over a longer period of time and will shake you out much too fast, especially at the fast (5,3,3) settings that are being used, which are daytrader settings

As way of example, see the attached chart of UJ and notice that "something else" is needed to hold thru to the end of the upmove !

mp
Attached File(s)
File Type: zip UJ 2 day =- 39 min.zip   40 KB | 252 downloads
  • #24
  • Apr 28, 2007 4:40pm Apr 28, 2007 4:40pm
Quoting mparker
===============================================

THERE are many very good traders who do not enter a position until the stoch or RSI breaks into overbought, knowing that a signal can remain in overbought for a very long time.

your sell signal is when the stoch or RSI breaks down thru its overbought lines(70 or 80, depending on your preferences), not while its still in it

Now given that the stoch is an excellent tool for present moves, it in no way shows you trend or where the currency can be expected to be going in the future, which is a function of accumulation/distribution, average true range and the weighted TSI, with momentum thrown into the mix as a spice !

the stochastics job is to show "strength" of the move, and candle (or small group of candles) by candle it does a very nice job, but it simply was never designed to show how to trade a trend over a longer period of time and will shake you out much too fast, especially at the fast (5,3,3) settings that are being used, which are daytrader settings

As way of example, see the attached chart of UJ and notice that "something else" is needed to hold thru to the end of the upmove !

mp
That's very interesting and makes sense of my recent experience with stochs and GBP/USD. Thanks
  • #25
  • Apr 28, 2007 4:43pm Apr 28, 2007 4:43pm
this starts to go really strange perspective, as if the perspective of indicator is not real. wait it is not real but it just happes to make sense in observation. The concusion is, observer market behavour closely might give indication on market behavour but its just not allways real? oh god damn its allways on eye of beholder.

inside out.
  • #26
  • Apr 29, 2007 2:14pm Apr 29, 2007 2:14pm
Quoting mparker
===============================================

THERE are many very good traders who do not enter a position until the stoch or RSI breaks into overbought, knowing that a signal can remain in overbought for a very long time....
TEB ... true- But alway with the trend

your sell signal is when the stoch or RSI breaks down thru its overbought lines(70 or 80, depending on your preferences), not while its still in it
TEB...You have to know your tool

Now given that the stoch is an excellent tool for present moves, it in no way shows you trend or where the currency can be expected to be going in the future, which is a function of accumulation/distribution, average true range and the weighted TSI, with momentum thrown into the mix as a spice !
....really

the stochastics job is to show "strength" of the move, and candle (or small group of candles) by candle it does a very nice job, but it simply was never designed to show how to trade a trend over a longer period of time and will shake you out much too fast, especially at the fast (5,3,3) settings that are being used, which are daytrader settings
... again really


mp

again Really ........NOT
  • #27
  • Apr 29, 2007 2:36pm Apr 29, 2007 2:36pm
Nurse says:
"Doctor, for some reason I have forgotten how to calculate this patient's Pulse Rate. Can you remind me please."

Doctor says:
"Sure. Count the beats over a small timeframe and multiply by the Required Timeframe divisor."
  • #28
  • Jun 19, 2007 12:12am Jun 19, 2007 12:12am
could any of you help, is there a way to synchronize a crosshair on the wkly, daily, 4hr and 1hr time charts to move simultaneously, thanks.
  • #29
  • Jun 19, 2007 4:30pm Jun 19, 2007 4:30pm
The lower time frame you use, the more whipsaws there will be. The 4hr chart is my favorite. One thing that makes a lot of sense to me that I learned at the forex trading expo in Vegas from a speaker named David Floyd (with Aspen Trading), is to trade one time frame and stick to it - don't go back and forth making trades among different time frames.

Quoting marcf
Hello Everyone:

I'm hoping I can get some different views to my question.....

When I'm working off of a 4 hr chart and waiting for my signals to give me a buy or sell signal, I will sometimes go over to the hour time frame. When I switch to that time frame, I obviously see the move has already been made on that time frame. I then start thinking to myself, would I be better off working off of the hour time frame, maybe my signals work better there than the 4 hr time frame and start to question, which is better.

I would love to hear any comments anyone has on this subject. Your input, would be much appreciated.

Thanks so much Forex Factory....

Marc
  • #30
  • Jun 19, 2007 4:44pm Jun 19, 2007 4:44pm
Becareful when using Multiple Time Frames, you might run into the common error of loosing perspective of what's actually going on in your main time frame (the time frame where the trading setup is actually unfolding) paying attention to what's happening in much smaller time frames. Quite frankly, whatever happens in the 15 mins chart is simply NOT relevant to the 4H time frame as a whole.

I personally zoom into a 4-time smaller time frame for the entry. If the setup is developing on the 4H time frame, I will take the entry off the hourly. I wont zoom into anything smaller than the hourly.
  • #31
  • Last Post: Oct 5, 2008 12:10pm Oct 5, 2008 12:10pm
ONE of the NORMAL methods of using the stoch (assuming you are not already in the trade) is to buy when the stoch line breaks thru its upside line at 70 or 80 (depending on what you choose to use) as that will GUARANTEE you will have at least one good run before it turns down and reverses thru the above lines !

while certainly better to be using all your indicators to verify the ORIGINAL upside move (SAFE entry usually being once the stoch has broken 50 to the upside with positive agreement from your other signals), entering when the stoch is overbought (especially when it ENTERS overbought with BUY signals from your other indicators) will allow you a decent pippage gathering.

enjoy and trade well

mp







Quoting bundubill
As a raw newbie I am following this discussion with great interest but the indicator which confuses me most is stochs. Over the past few days I managed to make a few pips on cable but could have made many more had I ignored the stochs which were telling me the pair was overbought/oversold when my other indicators were telling me to buy/sell. When is it safe to ignore stochs and when is it important not to ?
0 traders viewing now