Chart Question!!

Hello

i am still a newbie trading demos , on the charts,
the 1 min 15 min 5 min etc... of course they will show different movements, my question is how can i tell which time chart i use,
to enter my posistion??


Thanks

Trading wisdom states that one picks two different time frames that are approximately 4 time frames apart. For instance the 15 min and the 60 min charts. Five min and 15 min might do. It all depends on what you are comfortable with after practicing.
Experiment to see how you like to trade. Get your signal to trade from the larger time frame and enter on the smaller... if ... and there are a lot of 'ifs' to study. One of them would be... enter on the smaller if it is going in the same direction as the larger.

Lou

Thanks Alot Lou For Your Help!!!
I Appreciate It.






Corell

I suggest using the 5 minute time frame for scalping trades. If you want to trade longer term you should use the 15 or 30 minute chart. You always can use higher time frames to see the direction of the market.

My advise,

To daytrade or scalp, use low timeframes : 1 min, 5 min or even 15min.
To swingtrade, go to 15 min, 1 hr or even 4hr
And to follow the trend, look at daily or even weekly charts.

The author and trader Dr. Alexander Elder came up with a way of managing multiple timeframes with his trading called "the three screen system."

The idea is to have 3 different timeframes in 'view' as you consider your trades. Always observing the higher timeframe to make sure your trade isn't going to run up against technical levels further out.

As for which timeframe you centre yourself on, that depends on your strategy, patterns, and desired holding time.

Some patterns give great, and clean, signals on the daily chart, but turn into noise and chop on the 5m chart. You'll have to do some work to figure out what strategy you like best and how it plays through on a given timeframe chart (backtesting.)

General rule of thumb is most intra-day traders stick to the 1,5,15m charts and hold anywhere from a few minutes to hours. Swing traders like 15m,1h,4h,1d and hold for a few days. Position traders hold for a few days,weeks and usually stick to the daily chart.

That's good advice and as to the rookie, select the timeframes you prefer and you can select from a whole lot and it also depends on what kind of trading you're into..hourly/day/weekly and so on.