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The Daily charts are KEY

  • #21
  • Jan 15, 2007 3:42pm Jan 15, 2007 3:42pm
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
The only reason any chart means anything is because YOU have accepted it as an accurate reading of what is actually going on in the market.
  • #22
  • Jan 15, 2007 3:43pm Jan 15, 2007 3:43pm
What lot size are you guys that trade off of the daily and higher using?
  • #23
  • Jan 15, 2007 8:48pm Jan 15, 2007 8:48pm
I totally agree. When I used to try trading off 5-min, 15-min, and even 1-hour charts, I always got skunked. Now I use 4-hour charts to take advantage of short-term volatility, but look to the dailies and weeklies to determine direction. This approach has turned my account around completely, and I now enjoy profits instead of losses, on a consistent basis. I'm not in it for the action, I'm in it to make money.

Perfect example, right now the market is flat. I'm doing a little research, having a beer, and watching a hockey game. In other words, multi-tasking. Until I see something on the 4-hour charts, at least, I'm just not trading. Why look for a 5-pip scalp for hours? I'm looking for a 150 pip move on the 4-hour, or a 300 pip move on the daily, and they happen all the time if you learn how to look for them...
"The time to act is when others show signs of tire." --W.D. Gann
  • #24
  • Jan 15, 2007 9:39pm Jan 15, 2007 9:39pm
Quoting hidethereal
The only reason any chart means anything is because YOU have accepted it as an accurate reading of what is actually going on in the market.
yes, i agree. But i guess what i'm saying here is that trading on a small chart in the direction of a larger chart is a safer move as to trade against it.

E.G, try shorting the GBPJPY.....u need guts to do that even with a solid analysis.
  • #25
  • Jan 15, 2007 9:56pm Jan 15, 2007 9:56pm
Quoting bugscoe
What lot size are you guys that trade off of the daily and higher using?
I think u should ask how much pips we risk right? fo me, it's the pips that comes first, then the risk.

i risk about a 115 pips or something like that for the daily, it all depends on how things are though
  • #26
  • Jan 16, 2007 2:00am Jan 16, 2007 2:00am
Quoting slingshot
Price action is price action no matter what time frame charts you use.
Absolutely... and that action must pass through 5 sec and tick charts too... LoL
  • #27
  • Jan 16, 2007 2:10am Jan 16, 2007 2:10am
Quoting permanentjaun
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.
It depends on how you build your chart... You can clear the noise or trade the noise from 5 sec or tick charts too... Low risk and less draw down; so that you can trade more lots with high leverage... and you do not need to monitor or predict... You can not even see these good moves from 5 min chart... Daily chart is good for long term investment and you must absorb big draw downs; unless otherwise you are trading candles or price...
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  • #28
  • Jan 16, 2007 2:20am Jan 16, 2007 2:20am
Quoting Aspire
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
Absolutely...
  • #29
  • Jan 16, 2007 2:24am Jan 16, 2007 2:24am
You should stick to dailys, not because they are "better" but because you are nervous about trading on smaller timeframes, meaning you dont have a solid plan/method and need more time to react to market conditions that are unfolding. The advantage of trading dailys with little to no leverage is clear, more time to make decisions = less pressure = better decisions(for you), however, if you are quick and solid with analysis/plan/method and strive under pressure, then shorter timeframes can be very rewarding. Nevertheless, it is a good Idea to work your way down until it becomes automatic and execution isn't sacrificed. Don't knock it down though just because you are incapable of striving on that level. Being unaware of your own weakness and living in denial just because of your inability to succeed on certain timeframes will only hurt your trading. What will you do when you fail with daily timeframe, start trading the monthlys claiming that dailys are too short to trade profitably off of?
Man who scratches ass should not bite fingernails
  • #30
  • Jan 16, 2007 2:26am Jan 16, 2007 2:26am
Quoting dukeofdents
I totally agree. When I used to try trading off 5-min, 15-min, and even 1-hour charts, I always got skunked. Now I use 4-hour charts to take advantage of short-term volatility, but look to the dailies and weeklies to determine direction. This approach has turned my account around completely, and I now enjoy profits instead of losses, on a consistent basis. I'm not in it for the action, I'm in it to make money.

Perfect example, right now the market is flat. I'm doing a little research, having a beer, and watching a hockey game. In other words, multi-tasking. Until I see something on the 4-hour charts, at least, I'm just not trading. Why look for a 5-pip scalp for hours? I'm looking for a 150 pip move on the 4-hour, or a 300 pip move on the daily, and they happen all the time if you learn how to look for them...
You do not need hours to grab 5 pips from the market and 5 pips with 30 lots will give 150 pips results -- you can drink beer and play golf all day... Key - You must know when to scalp the market... and money management -- All I need is my 5 sec Rainbow...
  • #31
  • Jan 16, 2007 2:34am Jan 16, 2007 2:34am
Quoting linuxtroll
You do not need hours to grab 5 pips from the market and 5 pips with 30 lots will give 150 pips results -- you can drink beer and play golf all day... Key - You must know when to scalp the market... and money management -- All I need is my 5 sec Rainbow...

I agree completely. Also l would never turn away a five pip scalp even if just one lot. Especially if conditions are changing and market is turning against me. Alot of this larger timeframe mentality is born of the all or nothing attitude on shorter timeframes. You don't have to hit your farthest target and you don't have to get your farthest entry, it is legal to build positions on short timeframes, unless of course you're just overleveraged.
Man who scratches ass should not bite fingernails
  • #32
  • Jan 16, 2007 8:26am Jan 16, 2007 8:26am
5 Second chart. Really.

All I can think of with that kind of trading setup is:

A) Trade 100 times a day making 5 pips at a time with a 3 pip spread?

B) Trade only a couple of times a day and believe like a lot of those traders who think they will get rich making 5-10 pips a day?

C) Trade 30 minutes before going to work in the morning and late evening before going to bed?

Which do you fall into or is there some other reason for such micro level trading.
  • #33
  • Jan 16, 2007 10:06am Jan 16, 2007 10:06am
Quoting SunTrader
5 Second chart. Really.

All I can think of with that kind of trading setup is:

A) Trade 100 times a day making 5 pips at a time with a 3 pip spread?

B) Trade only a couple of times a day and believe like a lot of those traders who think they will get rich making 5-10 pips a day?

C) Trade 30 minutes before going to work in the morning and late evening before going to bed?

Which do you fall into or is there some other reason for such micro level trading.
lol. I would love to see a professional trader trading the 5 min chart. I bet even he would have his fingers crossed and bitting his nails.

Everyone's point was well taken. The daily chart may be key, but not for all Locks.

here are some 15 min and daily charts from USYEN

http://i10.tinypic.com/30u9y0w.gif

daily:

http://i14.tinypic.com/44k2ki1.gif
  • #34
  • Jan 16, 2007 10:26am Jan 16, 2007 10:26am
I assume intraday chart is showing supoort/resistance lines? Don't look at USDJPY.

What is daily chart supposed to be showing with red and green ovals. I know price turned there but how does one know that before it happened?
  • #35
  • Jan 16, 2007 11:53am Jan 16, 2007 11:53am
Quoting mxb
i use daily for entry/exit and weekly for trend
works great!
i'm actually using this technique now, using candlestick formations around those weekly trends..not doing good right now cause i either jump into trades too early without confirmation..it's a fear/greed factor lingering
  • #36
  • Jan 16, 2007 8:15pm Jan 16, 2007 8:15pm
Quoting don perry
lol. I would love to see a professional trader trading the 5 min chart. I bet even he would have his fingers crossed and bitting his nails.

Everyone's point was well taken. The daily chart may be key, but not for all Locks.

here are some 15 min and daily charts from USYEN

http://i10.tinypic.com/30u9y0w.gif

daily:

http://i14.tinypic.com/44k2ki1.gif
Is Linda Rasche a professional trader?
Man who scratches ass should not bite fingernails
  • #37
  • Jan 16, 2007 9:04pm Jan 16, 2007 9:04pm
Quoting SunTrader
I assume intraday chart is showing supoort/resistance lines? Don't look at USDJPY.

What is daily chart supposed to be showing with red and green ovals. I know price turned there but how does one know that before it happened?
that is when u know. When the price turns, u go the other way.

study reversal patterns. Google it
  • #38
  • Jan 16, 2007 9:30pm Jan 16, 2007 9:30pm
Oh Ok, That simple.

When it stops going down buy, when it stops going up sell.

Does Google tell me when that will happens??

I think I will wait for Leugimp to reply, thank you.
  • #39
  • Edited 9:52pm Jan 16, 2007 9:34pm | Edited 9:52pm
It really is that simple Sun. Check out Steviet's trade journal. He uses a simple daily chart and makes calls that are right on the mark. It sounds like maybe you need more something LOL
Quoting SunTrader
Oh Ok, That simple.

When it stops going down buy, when it stops going up sell.

Does Google tell me when that will happens??

I think I will wait for Leugimp to reply, thank you.
Trade what you see - Not what you think
  • #40
  • Jan 16, 2007 10:19pm Jan 16, 2007 10:19pm
summitfx

I know how to trade pivot highs and lows. I know how to ski them too.



I haven't found much here on FF that I haven't learned years ago. If you want to be helpful answering for somebody what does this mean then "The daily chart may be key, but not for all Locks" which was mentioned.

Sun
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