The Daily charts are KEY | Forex Factory

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The Daily charts are KEY

  • #1
  • First Post: Jan 14, 2007 7:27am Jan 14, 2007 7:27am
would you sit and watch the i minute chart and trade comfortably off it?

how about the 5 min chart?

how about the 15 or 30 min?

how about the hour or 4 hr?

You see, your confidence builds as the timeframe expands.

Why then are so many forex traders caught stuck on the smaller timeframe charts as oppose to the 3hr /4hr or daily?

if u should look at the daily chart, you will see that in almost every bull candle is accompanied by at least one other.

candlestick reading on the daily chart can tell where the real trend is and allows you to make proper technical analysis.

also, trend reversal patters are solid and maybe over 80% safe to follow.

for me, Technical analysis don't exist on charts below the 1h. It is just too risky..

Dont believe me? Start analyzing any USD based Daily charts and see
  • #2
  • Jan 14, 2007 8:51am Jan 14, 2007 8:51am
i agree with you...
Sorry about my english...
  • #3
  • Jan 14, 2007 9:24am Jan 14, 2007 9:24am
It is just traders' Greed and impatience that have them trading 30M chart without even a glimpse of the daily.
  • #4
  • Edited Feb 1, 2007 10:55pm Jan 14, 2007 9:47am | Edited Feb 1, 2007 10:55pm
I agree with you i used to trade with the smaller lights, and was losing money instead of making.I started trading with the bigger lights short term day,720, 180,etc.I started making money.The bigger lights strategy shows the big picture of what direction the currency pairs are going in specific time frames.
  • #5
  • Jan 14, 2007 9:51am Jan 14, 2007 9:51am
i use daily for entry/exit and weekly for trend
works great!
  • #6
  • Jan 14, 2007 9:57am Jan 14, 2007 9:57am
Well, I'm normally use the 5 or 15 min bar chart for scalping...

While for the daily trade, I'm will into 4hrs or daily chart
  • #7
  • Jan 14, 2007 10:58am Jan 14, 2007 10:58am
Totally agree, I look at the charts once a day.
Got reamed on another thread for saying somebody was stupid for going long on the EURUSD last week, well duh!, take a look at the daily.
The breaking of a wave cannot explain the whole sea.
  • #8
  • Jan 14, 2007 11:43am Jan 14, 2007 11:43am
Quoting don perry
would you sit and watch the i minute chart and trade comfortably off it?

how about the 5 min chart?

how about the 15 or 30 min?

how about the hour or 4 hr?

You see, your confidence builds as the timeframe expands.

Why then are so many forex traders caught stuck on the smaller timeframe charts as oppose to the 3hr /4hr or daily?

if u should look at the daily chart, you will see that in almost every bull candle is accompanied by at least one other.

candlestick reading on the daily chart can tell where the real trend is and allows you to make proper technical analysis.

also, trend reversal patters are solid and maybe over 80% safe to follow.

for me, Technical analysis don't exist on charts below the 1h. It is just too risky..

Dont believe me? Start analyzing any USD based Daily charts and see

use weekly for trend, daily and 4hr charts for setups, 60-15 min charts for entries.
With a break always expect a pullback, otherwise, you're dead meat/
  • #9
  • Jan 14, 2007 12:02pm Jan 14, 2007 12:02pm
Quoting don perry
if u should look at the daily chart, you will see that in almost every bull candle is accompanied by at least one other.
If you look at what daily chart? For EUR/USD most bull candles are followed by another but for USD/CHF most bull candles are not followed by another. That's because we've been in an anti-dollar trend over the past year. That's great if you're looking at the past but in the next few months are we bullish or bearish for the dollar so should we go with the bull candles or the bear candles?

It would be great if there was a simple 'holy grail' but there isn't.
  • #10
  • Jan 14, 2007 12:27pm Jan 14, 2007 12:27pm
I like'em all : )

I'm not taking sides with the issue because i do use them each in my trade-the-breakouts style.

Sometimes i'll trade a break out on a daily H/L, sometimes i'll trade a break out of the Asian (not neccesarily breaking the daily candle's H/L but a box-breakout) off a traditional 5m box trade setup.

I have 2 professional spot-forex and futures acquaintences that trade on intraday charts (this in their terms includes tick charts and up to hourly).

Just stating what i know of my pro-trading friends that make a living trading off the intraday time frames. I actually do not know personaly of any pro-trader (i'm talking institutional trader and multi-million dollar accouts) that have told me they specificaly trade the longer term. BUT I know they are out there, it is just that for what ever reason, providence has only hooked me up with pro/successful intraday career traders. When talking to my 2 proFriends mentioned above they tell me why would they trade off a daily chart when the trend starts in the stream and can take out of the flow in an hour's time what they need to meet or surpass their goals?

I can imagine there will be/are just as many pro traders (maybe more?) that trade a different style that includes the longer time frame. And that is cool ! It's one reason we have Fords, Chevys, Toyota, Nissan, Citroen, BMW... Different Strokes for Different Folks!!! One size does not fit all.

: ) Thom
  • #11
  • Jan 14, 2007 12:31pm Jan 14, 2007 12:31pm
Quoting clhone
I agree with you i used to trade with the smaller lights, and was losing money instead of making.I started trading with the bigger lights short term day,720, 180,etc.I started making money.The bigger lights strategy shows the big picture of what direction the currency pairs are going in specific time frames.


I agree 100%, I love the daily charts for trend. Following 15 min. Charts doesn't cut it. Used to use 4hr. Charts, but like the daily more for this. I am a trend trader (paper trader) yet. Great thoughts all! IMO
  • #12
  • Jan 14, 2007 12:39pm Jan 14, 2007 12:39pm
I think it comes down to the weight of the signals you're getting. A break of resistance on a 10 minute chart doesn't have the same significance of a break of resistance on a daily chart just as a monthly chart holds more weight than a daily chart. So the whipsaws and false breakouts will/should occur less often as you get more correct signals on the longer time frames.
  • #13
  • Jan 14, 2007 1:45pm Jan 14, 2007 1:45pm
Price action is price action no matter what time frame charts you use.
Good Trading... Slingshot
  • #14
  • Jan 14, 2007 2:17pm Jan 14, 2007 2:17pm
Quoting slingshot
Price action is price action no matter what time frame charts you use.
100% with you on that one.
With a break always expect a pullback, otherwise, you're dead meat/
  • #15
  • Jan 14, 2007 2:48pm Jan 14, 2007 2:48pm
Quoting slingshot
Price action is price action no matter what time frame charts you use.
Yes, but resistance that is visible on a 10 minute chart that you don't see in a daily chart doesn't have as much weight as clear resistance on a daily chart. Double bottoms forming on a daily/weekly chart could be months apart and not visible on smaller time frames.

It's the same reason people use MA's with longer time frames. A 200 period MA carries more power than a 3 period MA. The same holds true for time frames. What you see on a daily/weekly chart is much more important than what you see on a 10 minute chart. The 10 minute chart is just noise compared to the overall workings of what's occuring on a daily chart.
  • #16
  • Edited 10:26pm Jan 15, 2007 2:46am | Edited 10:26pm
Quoting slingshot
Price action is price action no matter what time frame charts you use.
a 100 pip move on a 10 minute chart is the same 100 pip move on a daily.

but, the thing is that larger time frames give better Technical analysis signals and overall trend direction
  • #17
  • Jan 15, 2007 6:14am Jan 15, 2007 6:14am
Quoting don perry
not really, it depends on how u look on it. a 100 pip move on a 10 minute chart is the same 100 pip move on a daily.

but, the thing is that larger time frames give better Technical analysis signals

The bars or candles you trade should be in direct relationship to the size of your equity and risk tolerance. I do not trade with indicators. I trade monthly and weekly charts. My point is that value is value and price action is price action. The time frame of a chart has nothing to do with it. If you use indicators (which I think should be outlawed) then I agree that longer time frame charts are more accurate but they can move against a signal by several hundred points on long time frames.

Slingshot
Good Trading... Slingshot
  • #18
  • Jan 15, 2007 7:29am Jan 15, 2007 7:29am
When you are asked the question "Is the trend up or down?", how many of you ask the question "What time frame?"

This thread started out with 'The Daily charts are Key' which is true for some but not all. Accrete's post says it all.

Method + Ability = pips profit

Happy Trading
  • #19
  • Jan 15, 2007 2:49pm Jan 15, 2007 2:49pm
I trade 4hr and daily mostly.

But the trend that is most importtant is the one that is in alignment with what I am trading. If I were to trade a 5 minute chart I would be aware of where longer term support/resistance are but it wouldn't be as important as the 5 minute sup/res areas.
  • #20
  • Jan 15, 2007 3:22pm Jan 15, 2007 3:22pm
Daily here. The short term charts make me nervous to watch, and I lose money almost every time with them. With the daily I look once per day, put in my trades using stop and limit orders and forget it until the next evening. That way I can't pull out just before it goes my way or jump in too late.
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