I am working since 2004 in Forex market and I cant live from trading profits. I do not say I know much but I would like to share what I know.
Trends take shape in different time frames. ( It is complex issue although it seems easy)
Some of them happens in smaller time frame like 1 Min, 2 min or 5 min and some of them in daily weekly ... and so on.
Bigger time frames always have effect on smaller ones but it is not linear effect. I explain it with an example :
If you work on 1 min and try to catch 1 min time frame trends , Weekly trend is have some effect on 1 minute time frame but not much.
* Trend of the time frame you are working in is the most important one and the most effective, the higher time frame which is usually 5 times bigger than the main is the second more important and then 25 times bigger time frame is third most important .
Example: My main working time frame is 1 min
* Trends which take shape in 1 min time-frame are most important ones.
** Trends which take shape in 5 min time frame are second important ones.
*** Trends which take shape in 30 min time frame are third important ones.
- We usually can ignore the effect of time frames which bigger than 30 times although they are still effective.
To make it more clear: a monthly downtrend for sure have very small effect on 5 sec up trends but we can ignore it, and considering it can not improve our results.
So if want to start trade in 1 min time frame , first and most important you have to observe trends in this time frame .
So if you are trading in 1 min time frame , and you want to go short if trend in this time frame is up regardless of sharp downtrend in hourly or daily.You should wait till 1 min time-frame change direction
These are basics you should know, I will explain strategy in next posts.
Trends take shape in different time frames. ( It is complex issue although it seems easy)
Some of them happens in smaller time frame like 1 Min, 2 min or 5 min and some of them in daily weekly ... and so on.
Bigger time frames always have effect on smaller ones but it is not linear effect. I explain it with an example :
If you work on 1 min and try to catch 1 min time frame trends , Weekly trend is have some effect on 1 minute time frame but not much.
* Trend of the time frame you are working in is the most important one and the most effective, the higher time frame which is usually 5 times bigger than the main is the second more important and then 25 times bigger time frame is third most important .
Example: My main working time frame is 1 min
* Trends which take shape in 1 min time-frame are most important ones.
** Trends which take shape in 5 min time frame are second important ones.
*** Trends which take shape in 30 min time frame are third important ones.
- We usually can ignore the effect of time frames which bigger than 30 times although they are still effective.
To make it more clear: a monthly downtrend for sure have very small effect on 5 sec up trends but we can ignore it, and considering it can not improve our results.
So if want to start trade in 1 min time frame , first and most important you have to observe trends in this time frame .
So if you are trading in 1 min time frame , and you want to go short if trend in this time frame is up regardless of sharp downtrend in hourly or daily.You should wait till 1 min time-frame change direction
These are basics you should know, I will explain strategy in next posts.
