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Preferred Timeframe for Trading

  • #21
  • Sep 14, 2014 10:24am Sep 14, 2014 10:24am
Quoting Proximus
{quote} In basic terms, the price makes smooth and big swings on high timeframes, and choppy consolidated moves on low TF.
According to my observations of the market during the last 10 years, there is no discernible difference in price movements and patterns price makes in different timeframes.

Just by looking at any chart, one can't tell if it is a 1m chart or 10m or hourly or daily. To a large extent, the choice of timeframe depends upon how much time the trader is willing to sit in front of the computer watching active or potential trades, and how quickly he thinks he is able to analyse the market to correctly assess the possible direction the price is going to take over the next few candles.

Smaller timeframes, of course, give more frequent opportunities to enter the market, and consequently possibly (hopefully) higher output in number of pips gained. But for someone not fast enough in his or her market analysis, or for someone not willing to sit glued to the screen, higher timeframes might be preferable.

I use multiple timeframes for analyzing the market I am trading. Larger timeframes for the big picture, and smaller timeframes for fine tuning my entries and exits.
  • #22
  • Sep 15, 2014 7:53am Sep 15, 2014 7:53am
Quoting GnWFx
{quote} According to my observations of the market during the last 10 years, there is no discernible difference in price movements and patterns price makes in different timeframes. Just by looking at any chart, one can't tell if it is a 1m chart or 10m or hourly or daily. To a large extent, the choice of timeframe depends upon how much time the trader is willing to sit in front of the computer watching active or potential trades, and how quickly he thinks he is able to analyse the market to correctly assess the possible direction the price is going...
There is, it may not be visible to the eye, but there is.There are many methods which can detect the best timeframe, at any moment, by measuring the signal-to-noise ratio of the stick versus the tick data.

But i`m more curious why retail traders are stuck with the timeframe they are using at the moment, and the motive behind it.
"There's a sucker born every minute" - P.T. Barnum
  • #23
  • Sep 15, 2014 8:37am Sep 15, 2014 8:37am
recently started tiling four time frames on the screen(d/h4/h1/m30), finding precision entry on the m30 and managing it on all charts simultaniously. just using regular boring sr,trend,channel lines and basket charts with a basket ea. trying to hold positions as long as possible
  • #24
  • Sep 15, 2014 10:24am Sep 15, 2014 10:24am
I feel it's important to be dynamic with one's strategy, while also trying to stay objective as possible. Personally, I have certain thresholds that when met, force me to go to larger timeframes.
  • #25
  • Sep 15, 2014 2:24pm Sep 15, 2014 2:24pm
Looks like the bulk of people tend to trade between M5 and D1 timeframes, its interesting that nobody trades higher timeframes.
"There's a sucker born every minute" - P.T. Barnum
  • #26
  • Sep 15, 2014 3:16pm Sep 15, 2014 3:16pm
I was bored guys so i made this nice chart to show the distribution of "preferred timeframes" amongst traders, based on the 40 voters who voted in this poll

Attached Image (click to enlarge)
Click to Enlarge Name: distr.png Size: 39 KB


Please vote on the poll more, so that we can have a better sample, i`m really curious what timeframe traders use and also why
"There's a sucker born every minute" - P.T. Barnum
  • #27
  • Sep 15, 2014 5:23pm Sep 15, 2014 5:23pm
I have downloaded the whole forex factory forum content (all the threads, all the posts) two months ago, so I thought it would be fun to go through the content and count how many times each time-frame is mentioned.

This is what I searched for:
Inserted Code
COUNT = {
    "m1":  ["m1", "one minute", "one-minute"],
    "m5":  ["m5", "five minute", "five-minute"],
    "m15": ["m15"],
    "m30": ["m30", "half hour", "half-hour"],
    "h1":  ["h1", "one hour", "one-hour"],
    "h4":  ["h4", "four hour", "four-hour"],
    "d1":  ["d1", "daily"],
    "w1":  ["w1", "weekly"],
    "mn":  ["mn", "monthly"],
}

Of course, this is not exactly scientific, since for example a phrase such as "you need to monitor the daily news" would add +1 to the D1 count. But it's better than nothing. The results:

https://dl.dropboxusercontent.com/u/...f_forum_tf.png

I could also count how the tf preference changed (what this chart looked like for each individual year), but that requires some extra processing which I don't feel like doing right now.
  • #28
  • Sep 15, 2014 5:31pm Sep 15, 2014 5:31pm
As for me, I'm using non-linear time-frames, but which are linear in average volatility (ie - time flows at the speed of volatility). They are somewhat similar to Renko/ConstantRangeBar that were mentioned here. But mine are 100% tick based, and displayed as tick-charts.
  • #29
  • Sep 16, 2014 3:07am Sep 16, 2014 3:07am
Quoting Adal
I have downloaded the whole forex factory forum content (all the threads, all the posts) two months ago, so I thought it would be fun to go through the content and count how many times each time-frame is mentioned. This is what I searched for: COUNT = { "m1": ["m1", "one minute", "one-minute"], "m5": ["m5", "five minute", "five-minute"], "m15": ["m15"], "m30": ["m30", "half hour", "half-hour"], "h1": ["h1", "one hour", "one-hour"], "h4": ["h4", "four hour", "four-hour"], "d1": ["d1", "daily"], "w1": ["w1", "weekly"], "mn": ["mn", "monthly"], } Of...
Interesting however i dont think its accurate, because the daily can be "D1", "1D", "Daily" , "1 Day", and case sensitive, etc phrases.

Also the other timeframes can also be represented by other terms.

And even if you seach up all possible terms it can still be wrong, because for example in the interactive thread, many timeframes can be mentioned, but in the systems thread, X Y Z system has already a predetermined TF, and if the system is popular like that Sonic system, and has like 5000-6000 followers then that also gives weight to that particular TF which is mentioned/used there in that system.

I`m only looking for a general overview about traders using TF, just to see which one is more traded to estimate liquid periods
"There's a sucker born every minute" - P.T. Barnum
  • #30
  • Sep 16, 2014 6:36am Sep 16, 2014 6:36am
I just found this thread, its an old thread but its similar to this:

http://www.forexfactory.com/showthread.php?t=351154

Let this thread be the continuation of this older thread.There is much to discuss about timeframes in general, that has not been discussed there
"There's a sucker born every minute" - P.T. Barnum
  • #31
  • Sep 16, 2014 6:57pm Sep 16, 2014 6:57pm
I found it very strange that nodody uses renko bars, yet its said that its very popular, i wonder why
"There's a sucker born every minute" - P.T. Barnum
  • #32
  • Sep 17, 2014 4:03pm Sep 17, 2014 4:03pm
Just from observing the charts... Sometimes a time frame is smooth, or its choppy. I would like to trade daily so I only have to look at the bar 1 time, but like I said some markets have been choppy in the daily time frame, but when I lower the time frame to lets a say a 4hr, I see a picture but the problem with the four is every FOURTH hour I have to look at a chart every day. It gets annoying.
  • #33
  • Sep 17, 2014 4:09pm Sep 17, 2014 4:09pm
M15, H1, H4, looks like I'm in good company...
  • #34
  • Sep 18, 2014 6:45am Sep 18, 2014 6:45am
Quoting Aad
M15, H1, H4, looks like I'm in good company...
Yep, looks like most of the guys are trading in that timeframe interval.Its interesting because i see soo many short term scalpers around the forum, yet the poll shows otherwise.

Its interesting nontheless.
"There's a sucker born every minute" - P.T. Barnum
  • #35
  • Sep 18, 2014 7:48am Sep 18, 2014 7:48am
I definitely prefer the 4h and 15min timeframes, because I think they're the most reliable ones, although I do occasionally check the daily and even the weekly timeframes as well.
  • #36
  • Sep 18, 2014 7:58am Sep 18, 2014 7:58am
Quoting victoriajen
I definitely prefer the 4h and 15min timeframes, because I think they're the most reliable ones, although I do occasionally check the daily and even the weekly timeframes as well.
Yes indeed i agree completely, the H4 is very smooth, and the M15 is good for entry picking, depends on what you want to trade, the breakout or the pullback.

For breakout i think M1 is the most accurate, but for any other tehniques its probably from M15->Daily
"There's a sucker born every minute" - P.T. Barnum
  • #37
  • Sep 18, 2014 5:30pm Sep 18, 2014 5:30pm
Here is how the poll looks like so far, with 55 votes:

Attached Image (click to enlarge)
Click to Enlarge Name: bbbbbbbbbbb.png Size: 23 KB


Looks like more people tend to trade between M15 and H4 and there are scalpers on M1 aswell, the rest is empty.

The sample size of 55 is too small, so new readers of this thread,please vote on the poll on page 1 , thanks !
"There's a sucker born every minute" - P.T. Barnum
  • #38
  • Sep 19, 2014 7:54am Sep 19, 2014 7:54am
It makes sense - once a trader accumulates some experience they quickly realize which are the most reliable timeframes.
  • #39
  • Sep 19, 2014 8:11am Sep 19, 2014 8:11am
Quoting victoriajen
It makes sense - once a trader accumulates some experience they quickly realize which are the most reliable timeframes.
Well everyone needs to find the TF suitable for his strategy.A long term portfolio manager trading 6m-12m periods wont really gaze at M1 charts wont he?

But yes i see the trend that most people try to stick intraday, which is a result of better brokers,faster order processing, whereas few decades ago everyone traded on a monthly perspective.
"There's a sucker born every minute" - P.T. Barnum
  • #40
  • Sep 20, 2014 8:15am Sep 20, 2014 8:15am
Is there anyone else who wants to share their opinion about timeframes?

C'mon guys i really want to keep this thread rolling so please dont be shy and share your opinion, thanks!
"There's a sucker born every minute" - P.T. Barnum
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