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Daily or Higher Timeframe Trading

  • #1
  • First Post: Edited 7:06am Oct 18, 2024 3:48am | Edited 7:06am
Hi All
I have been on this forum for a while.
I am mainly interested in longer timeframe trading.

My job is time intense and I do not have the opportunity of checking the charts many times intraday as some have.
The market has room for all participants - just put your money where your mouth is

I have been trading for a while with varying success and I am trying to morph my current trading system into a statistically profitable mechanical system based on longer timeframes.

This thread will be home to my thoughts and trades as I develop and hone this system going forward.
I trade with the very simplest of indicators - SMA, RSI and MACD with a bit of EW influences as well.
Comments are welcome - especially with charts.
If you think you can or cannot do it you are correct
  • #2
  • Oct 18, 2024 6:23am Oct 18, 2024 6:23am
The usual system for traders, especially the lower timeframe traders is generally as follows:
Analyze the 4h and use the hourly timeframe for entry
Analyze the Hourly and use the 5min for entry.

In the same vein I know someone that analyses the weekly and uses the daily for entry.
I am pitching my pegs/tent around this area.

Longer timeframe trading afford you the following:

  1. The ability to analyze at the end of day
  2. Trading outside the noise of intraday trading
  3. Better trend indication
  4. Ability to catch larger moves in the markets - swings and continued trends
  5. There might be more advantages but I can't think of it at this time of posting
  6. Near set and forget trading especially with stocks etc
  7. Time freedom
  8. More time for signals to play out.

Downsides include:

  1. Larger stops required - can be mitigated by setting commensurate trade sizes
  2. Longer waits sometimes for the trade to go in your favor compared to the opium of bagging quick intraday 10 pip profits
  3. Different mentality requirements compared to day traders
  4. Holding trades overnight and over the weekend with their inherent risks

I am sure there are more pros and cons but this is what comes to mind now

If you think you can or cannot do it you are correct
  • #3
  • Oct 18, 2024 9:41am Oct 18, 2024 9:41am
One main thing with trading on higher timeframes is the long waiting time for a good signal to appear and the lack of adrenaline candy obtained from trading lower timeframes.

We are armed with candlestick pattern charts and are quick to recognize them on the 15 minute chat and we pull the trigger.
Whichever way the trade goes we might be dome in an hour tops.
If it went well we are gurus and we are looking for the next profitable one.
If it didn't go well we are sure we can recover our losses and then some in the next trade in 15 minutes time. No time to catch your breadth at all.

We are more likely to take decisions while the candle is forming or shaping up because we believe no other shape can happen in the last 5 minutes of a hourly candle or the last 1 minute of a 5 minute candle etc. This behavior is possible in longer timeframes but it is less so.

I will post a chart when I get a trade that interests me soon

Comments about longer-term trading are welcome
If you think you can or cannot do it you are correct
  • #4
  • Oct 18, 2024 6:50pm Oct 18, 2024 6:50pm
Usually with higher time frames, the signs are all there, but we waste time, effort, with over-analysis by seeking the perfect entry, risk to reward, not to mention worrying about losing.
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It takes a lot for me to IGNORE you, but you can try.
  • #5
  • Oct 18, 2024 11:07pm Oct 18, 2024 11:07pm
Back in the day I ran a carry trade using g/j and added indiscriminately each 100 pip of movement in the long direction using a trade size equal to the account balance, the trend lasted several thousand pips and about 8 months, took around 20 min to set it up initially and maybe 10 min every few weeks to add expired orders. Hardest thing was to stay in the position and not get shaken out by the sometimes large pullbacks. Very hard to just sit and watch so I traded the pullbacks in another account manually best I could
  • #6
  • Oct 19, 2024 12:08pm Oct 19, 2024 12:08pm
Quoting Erebus
Usually with higher time frames, the signs are all there, but we waste time, effort, with over-analysis by seeking the perfect entry, risk to reward, not to mention worrying about losing. {image}
Thanks Erebus for this contribution. True works. Traders (including myself) faff about with getting the perfect entry - nail the last pip and the last pip of profit not know ing that it is near to impossible to do this. After the fact it is very doable and various rationalisations come to play. The market is a mixture of persornal psychologies that every level is a zone in my opinion and not a precise number. Hopefully I will bear this in mind at all times. Trading the longer timeframe affords on the opportunity to let the market intention devlop a bit more instead of trying to interprete every 5 minute candle.
If you think you can or cannot do it you are correct
  • #7
  • Oct 19, 2024 12:28pm Oct 19, 2024 12:28pm
Quoting js5020
Back in the day I ran a carry trade using g/j and added indiscriminately each 100 pip of movement in the long direction using a trade size equal to the account balance, the trend lasted several thousand pips and about 8 months, took around 20 min to set it up initially and maybe 10 min every few weeks to add expired orders. Hardest thing was to stay in the position and not get shaken out by the sometimes large pullbacks. Very hard to just sit and watch so I traded the pullbacks in another account manually best I could
Thanks for this. This describes me to a tee. If you look in my history you will see that I have always been interested in longer term trading and really started off well - kept to the plan. I slowly started looking at my trades that were meant to be longer term intraday. Then I slowly started moving stops etc. Before I knew it I was trading the hourly charts!

Hopefully this time I will stick to the rules. There is also the issue of letting profits run. After a day's profit I used to move the stops close to proce to protect profits. I then got stopped out with a small profit only to see price move in my predicted direction for days and days. I tell you I spoke some 'french' words to myself many times
If you think you can or cannot do it you are correct
  • #8
  • Oct 19, 2024 12:55pm Oct 19, 2024 12:55pm
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If you think you can or cannot do it you are correct
  • #9
  • Oct 19, 2024 1:15pm Oct 19, 2024 1:15pm
I was greatly influenced by V.P. from NNFX. Out of the whole philosophy, using the Daily TF made the most sense to me, which somehow I always come back to. Not so much for lack of time to deal with lower TF, but signal reliability. I don't see a problem with rarer signals. If they are really more reliable, just increase the size. At least with today's Prop firm's all around, it shouldn't be a problem.

Anyway, I am very interested in the topic and following .
  • #10
  • Oct 19, 2024 1:19pm Oct 19, 2024 1:19pm
Quoting vmd108
I was greatly influenced by V.P. from NNFX. Out of the whole philosophy, using the Daily TF made the most sense to me, which somehow I always come back to. Not so much for lack of time to deal with lower TF, but signal reliability. I don't see a problem with rarer signals. If they are really more reliable, just increase the size. At least with today's Prop firm's all around, it shouldn't be a problem. Anyway, I am very interested in the topic and following .
Thanks for your comments. I am also of the opinion that signals on the longer timeframes are more reliable. The stops are larger - generally but the trader can mitigate this with trade size adjustments. Like JS5020 said our pshchology when things are going well or when they do not immediately go our way is very important as well.
If you think you can or cannot do it you are correct
  • #11
  • Oct 21, 2024 7:27am Oct 21, 2024 7:27am
Quoting Olu
{image}
The usdjpy idea is not working out as per my interpretation of price action. I was looking for solid

Dollar strength was observed right out of the gate when trading started.

Luckily for me I have not gone short usdjpy as this position would be underwarter right now which means I have not been successful in my analysis of usdjpy market.

I hate factoring 'luck' in any trading strategy.
It means I still don't get the essence and the living of the markets.

Every trader has to keep assessing - longer time frame or not - whether they have a stastitically profiatble strategy or not. So that they can look for something else.
If you think you can or cannot do it you are correct
  • #12
  • Oct 21, 2024 1:25pm Oct 21, 2024 1:25pm
Quoting Olu
{quote} The usdjpy idea is not working out as per my interpretation of price action. I was looking for solid Dollar strength was observed right out of the gate when trading started. Luckily for me I have not gone short usdjpy as this position would be underwarter right now which means I have not been successful in my analysis of usdjpy market. I hate factoring 'luck' in any trading strategy. It means I still don't get the essence and the living of the markets. Every trader has to keep assessing - longer time frame or not - whether they have a stastitically...
Just an opinion shared, maybe USDJPY indicates the way JPY is strengthening / weakening, whereas the DXY index is a broader spectrum and
principally against the EUR as it's largest contingent.

Also better to align with the higher trend, so for a Daily Chart look at what the Weekly or even Monthly are doing first. Top Down analysis.
It never gets easier, you just get better
  • #13
  • Oct 22, 2024 9:09am Oct 22, 2024 9:09am
Quoting Shabs19
{quote} Just an opinion shared, maybe USDJPY indicates the way JPY is strengthening / weakening, whereas the DXY index is a broader spectrum and principally against the EUR as it's largest contingent. Also better to align with the higher trend, so for a Daily Chart look at what the Weekly or even Monthly are doing first. Top Down analysis.
Thanks Shabs19. Opinions shared are welcome
If you think you can or cannot do it you are correct
  • #14
  • Edited 7:05am Oct 23, 2024 6:51am | Edited 7:05am
By the way guys not all dojis mean a trend reversal. Let the candle close.
The candle after the doji on this timeframe has not closed yet and therefore anything can happen.
Price can tease to the downside and the soar past the high of the doji.
Price can go down and keep going below the low of the doji.
Price can also decide to stay between the boundaries of the doji candle.
If one is trading the daily candle let the candle close before making next step decisions
That's what I am saying
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If you think you can or cannot do it you are correct
  • #15
  • Oct 23, 2024 10:31am Oct 23, 2024 10:31am
Quoting Olu
By the way guys not all dojis mean a trend reversal. Let the candle close. The candle after the doji on this timeframe has not closed yet and therefore anything can happen. Price can tease to the downside and the soar past the high of the doji. Price can go down and keep going below the low of the doji. Price can also decide to stay between the boundaries of the doji candle. If one is trading the daily candle let the candle close before making next step decisions That's what I am saying {image}
Dojis are indecision candles, best to look for context of where they occur.

Usually there is past history at that price level.
It never gets easier, you just get better
  • #16
  • Oct 24, 2024 3:13am Oct 24, 2024 3:13am
Quoting Erebus
Usually with higher time frames, the signs are all there, but we waste time, effort, with over-analysis by seeking the perfect entry, risk to reward, not to mention worrying about losing. {image}
Hello Sir please kindly tell me if its possible to get this set up of yours both indis and template i will appreciate it if you can assist so as to combine them with my DAILY AND 4 HOURS CHARTS SYSTEM .Thanks for the past .
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  • #17
  • Oct 26, 2024 2:48am Oct 26, 2024 2:48am
I switched to longer timeframes, and honestly, it’s been a game-changer. It’s way less stressful and lets you focus on bigger trends without getting caught up in the small moves.
  • #18
  • Oct 27, 2024 11:10am Oct 27, 2024 11:10am
Still keeping an eye on the usdjpy. Price is struggling at the horizontal line resistance. Struggling yes but is not necessarily bearish.
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If you think you can or cannot do it you are correct
  • #19
  • Oct 30, 2024 4:47am Oct 30, 2024 4:47am
Hi all
I am trying to create a trade explorer for this thread and its strategy(ies) but all attempts keep failing.
I am flabbergasted. I have sent info to support on this issue.
If you think you can or cannot do it you are correct
  • #20
  • Oct 30, 2024 7:36am Oct 30, 2024 7:36am
Quoting Zollouvie
I switched to longer timeframes, and honestly, it’s been a game-changer. It’s way less stressful and lets you focus on bigger trends without getting caught up in the small moves.
I hear you Zollouvie. Thankes for your post.
Can you post charts of your inferences?
If you think you can or cannot do it you are correct
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