Importance of longer-term time Frames

If the daily chart shows an upward trend, but the other timeframes show a downward trend, would that be an indication to go short or to simply prepare for a drawdown until the trend picks up again?

Thanks,
Chris

I think it depends on the type of trade you want to place. If you are position trading for several days or even weeks, bailing on your trade might be premature. If you are trading off a 4 hour chart, if you decided to take a short trade , it would be a counter trend trade and would need to be monitored closely. If you are trading on time frames smaller than 1 hour, I would look to the next time frame larger to the one you are trading and try to only trade in the direction of that trend...

That is how I would trade under your criteria.

Scott

Here's what I think: I mainly trade off the 30-min chart. Direction is picked and decision is made based on that timeframe. Lower timeframe, 15-min in my case, is used to finetune entry and thereby manage risks.

I was thinking some more on what you said. Here are my thoughts.

Also, it is like Vegas said. everyone wants to bet the opposite color, just because the same color keeps coming up. Trade what you see, not what you think... that's my motto.

thanks Scott

Thanks. You're right: I've been trading with what I think instead of trading with what's actually going on in front of me. One of my main faults is to swtich between timeframes (even while using the Brain System). I had been placing trades in longer timeframes then exiting on the smaller. I'd of been a profitable trader by now had I not been doing things in reverse.

Chris

I trade mostly on a 15min chart and go for aprox 20 pip trades. I keep an eye on the 60min (1hr) chart for trends and direction. I have a tripple ema and I eyball the slope of the65 period ema to see trendiness. My main foucs however is the 15min chart. That is where I get all my indicators for my trade.

That said, I keep in the back of my mind what has gone on on the month,week, 4hr, 2hr, charts because as we all know "the Trend is YOUR FRIEND"

Higher Time Frames ! Higher Time Frames ! Higher Time Frames ! Higher Time Frames ! Higher Time Frames ! so important yet many donot want to trade with higher time frames.