Recovery?
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What do you mean by "best"?
The H1 usually provides one or more trades per session.
The recent change to the EA to trail the SL may actually have helped H4, we'll see next week as I'm running H4 on EURUSD and EURGBP
I think by best smilee89 means that there are less losers thus increasing the overall profit. I ran some backtests on EURUSD a while back in this thread and it showed that H4 was quite good. However in recent forward testing it hasn't looked as good, probably just hitting a patch of losers.
The recent change to the EA to trail the SL may actually have helped H4, we'll see next week as I'm running H4 on EURUSD and EURGBP
From what I have read it seems that traders fool themselves into thinking one time frame is superior to another. No matter what time frame, price is the same at the same time.
However the higher timeframes can sometimes filter out the 'noise' that a lower timeframe sees. With IB's the higher timeframes filter weaker trends and show stronger trends that break the IB. Still doesn't mean that a strong trend will hit the TP point though
Agreed
However the higher timeframes can sometimes filter out the 'noise' that a lower timeframe sees. With IB's the higher timeframes filter weaker trends and show stronger trends that break the IB. Still doesn't mean that a strong trend will hit the TP point though
Noise? A 1 tick chart is where is all starts. Every other chart is built upon that and are "conceptual" in nature. The questions are: "Where did price start and where is price now?" There is no noise only movement.
I don't disagree with this, but would point out that the market view at different timeframes is not the same. A 5m timeframe may be trending up, but the 4H is trending down and is part of a larger 1D down trend. In this instance, the 5m opposite trend is just 'noise', it won't last. Perhaps I need a word other than noise
- #276
- Feb 9, 2009 3:53am Feb 9, 2009 3:53am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Perhaps I need a word other than noise
By definition, any inside bar on a higher TF must be represented by a pull back on a lower TF, so a 30 min IB will show up as a pull back on a 5m or 1min chart.
Taking a 5 min chart, I have used the 34 ema to define the short term trend, BUT I also show two important MAs off the 60 min chart - the 20 and 50, thus I can easily see the longer term trend without changing chart.
All moves start with the PA off the lower TF, so last week's 790 pip rally in cable started on Monday at 12:27 GMT as the early US traders stopped the 190 drop right at the 4050 level. PA via a higher low on the 1 min chart at 12:44 GMT was the first signal confirming the bounce up off the 4050 level as a buy.
At 13:00GMT this was confirmed by the breakout of the 30 min IB at 4100 - another Sweet Spot / Physchl level. At this time, price was well under the 60 min MAs which were still sloping down. It was another 24 hours before price moved above these hourly MAs and confirmed the trend change.
Thus we had a clear example of how the PA off the 1 min chart clearly picked up the reversal into the 790 pip rally - quite useful "noise".
The attached chart shows the action so far today. The 30 min IB at 23:30 GMT last night gave a buy signal, but the 5 min PA showed the early failure of the rally for a tradable fall and the clear higher low after LO signaled a buy - which I took. The 30min IB at 7:30 gave confusing signals - not surprising as it was still in "Frankies Hour" and the Brits were not yet active. However, the two green MAs confirm that SO FAR the move has only been a pull back and the rally remains in force. PA around the 4850 level will confirm a continuation OR the start of a larger pull back....I've already banked pips at the 4800 level and trailed my stop on the remainder....TWT
Trading Levels with WRBs
