What's the benefit of lower time frames?

Quoting grajo

Disliked

This question is going to surprise a lot of people, but it's something that has had me confused, even though I'm sure the answer is obvious to everyone but me...

I have trouble understanding the concept of switching to a lower time frame to get a better entry. Could someone please explain?

Many trading strategies suggest doing this. But the current price is going to be the same no matter what time frame you're looking at, so how can switching to a lower one help?

Thanks in advance.

Ignored

Quoting Andrew's PF

Disliked

Finally, by zooming in this way, you can get a much better entry which really means a smaller stop. If I had entered on the daily, I would have gotten in at around 121.00. By going down, I got in at 121.35.

The idea behind the trade was that the Upper Median Line would prove to be resistance and price would then move to the Median Line. After the second rejection I had my stop loss target of 121.75. Using this method my stop loss was 35 pips smaller which raises my risk to reward ratio dramatically. The exit was 117.15.

Here are the two sets of figures:

Daily entry at 121.00 = 75 pip stop loss
Target is variable as price moves down. Exit is at 117.15
Profit is 385 pips
385/75 = reward to risk of 5.13
1% risk = 5.13% return

Hourly entry at 121.35 = 40 pip stop loss
Exit at 117.15
Profit is 385 pips
385/40 = reward to risk of 9.63
1% risk = 9.63% return

Seeing as I would risk the same percentage regardless of which entry I used, it makes more more money to get a better stop loss by zooming in.

I hope you're able to follow this.

Ignored