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Relevant timeline/TF for analysis

  • #1
  • First Post: Edited 10:09pm Dec 24, 2014 8:34pm | Edited 10:09pm
hello to all..
actually, there is something keep bothering me about when and from when to start the analysis..

as we know, there is HH, HL, LH and LL in a chart..
im always conduct an analysis based on 1H to 1D or W for technical analysis.

but the question is, if we look at 1D chart for example, what is the starting point of the date we should count from? i mean the relevant starting date to be count of?
is it start the analysis from 4 days ago until current activity?
from when i need to count that movement as a Higher High from example, is it from High from 4 days ago? or if there was Higher High in last week, is it relevant and do I need to count that as the first Higher High and count it for the analysis?

if any of you do not understand what Im trying to tell here, i will post some screenshot for better understanding.

Ty.
  • #2
  • Dec 25, 2014 2:42pm Dec 25, 2014 2:42pm
Maybe I'm not getting your question right but it doesn't matter how long it's been since the last swing high/low.
A swing point is a valid swing point if it occurred 2 days ago or 2 weeks ago.
I marked the swing points on the daily chart below. The amount of time between swing points isn't a factor in determining if it's valid.
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDDaily.png Size: 44 KB
  • #3
  • Edited 3:54pm Dec 25, 2014 3:40pm | Edited 3:54pm
The time frame between swing high and low has everything to do with how you will trade it. The determining factors are

(1) how wide of an SL you are comfortable with
(2) how long you would be willing to hold the position
(3) what your profit target is

I will also present the EURUSD daily chart, but at a much expanded view. Note the swing highs/lows are much different if considering this expanded view which covers much more time.

I am not recommending trading these swing highs/lows and holding positions for months. However, my point is, you need to determine the above 3 factors in order to ascertain swing highs lows, and they need to make sense with how you are trading.

For example, if you are holding a position for a few hours your SL might be tighter, and profit target closer to entry, than if you are holding for 3 months.

Edit: I posted and H1 chart, but the same principle applies if you expand D1 chart, so I added that to. I also just put arrows quickly without giving much thought, just to give an idea of potential swing high/low points. I think it shows the point in terms of how time frame is very key. Even if one doesn't trade off of charts, they would have to realize this principle in terms of how to trade any given currency pair. How much does it move? And how long does it typically take for it move? How volatile? All related to time...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EURUSDiH1.png Size: 76 KB
Click to Enlarge Name: EURUSDiDaily.png Size: 100 KB
  • #4
  • Dec 25, 2014 3:51pm Dec 25, 2014 3:51pm
Quoting benaiah
The time frame between swing high and low has everything to do with how you will trade it. The determining factors are (1) how wide of an SL you are comfortable with (2) how long you would be willing to hold the position (3) what your profit target is I will also present the EURUSD daily chart, but at a much expanded view. Note the swing highs/lows are much different if considering this expanded view which covers much more time. I am not recommending trading these swing highs/lows and holding positions for months. However, my point is, you need...

I think we're just reading the question differently which is why I pointed that out right away when I responded.

Here's the question he asked: "but the question is, if we look at 1D chart for example, what is the starting point of the date we should count from? i mean the relevant starting date to be count of?"
I didn't think he was asking how to trade the swing highs/lows, just how to look @ 1 timeframe & determine how far back in time to start counting the swing points. Maybe I'm reading his question wrong.

Maybe to answer the question differently, start looking @ your swing points from the last one created & continue marking HH/HL until you have enough points to create the pattern you're looking for. So for an uptrend to start in EU, you now need a HH followed by a HL.
  • #5
  • Dec 25, 2014 3:57pm Dec 25, 2014 3:57pm
thx guys..
so, its depend on the timeframe i want to use.
  • #6
  • Dec 25, 2014 3:59pm Dec 25, 2014 3:59pm
Quoting srt
{quote} I think we're just reading the question differently which is why I pointed that out right away when I responded. Here's the question he asked: "but the question is, if we look at 1D chart for example, what is the starting point of the date we should count from? i mean the relevant starting date to be count of?" I didn't think he was asking how to trade the swing highs/lows, just how to look @ 1 timeframe & determine how far back in time to start counting the swing points. Maybe I'm reading his question wrong.

haha..
both of the answer quite relevant to the question even it is not truly what im looking for..
yeah, thats the thing i want to ask exactly.

however, the things about the timeframe both of u are talking about make sense and i could accpt that.
thx btw.
  • #7
  • Dec 25, 2014 4:00pm Dec 25, 2014 4:00pm
Quoting srt
{quote} I think we're just reading the question differently which is why I pointed that out right away when I responded. Here's the question he asked: "but the question is, if we look at 1D chart for example, what is the starting point of the date we should count from? i mean the relevant starting date to be count of?" I didn't think he was asking how to trade the swing highs/lows, just how to look @ 1 timeframe & determine how far back in time to start counting the swing points. Maybe I'm reading his question wrong.
No problem. I see your point, in that you just look at the swing highs and lows, which I agree with, but I don't think it answers the question, and you acknowledged in your post the uncertainty as to whether you understood the question. Again. No problem.

So, it is definitely relevant to time, and very important to consider that. If one doesn't understand how time should relate to swing highs/lows, then they would have this type of question. The question was specific to the "time" factor. I don't think saying that it doesn't matter is a good answer.
  • #8
  • Dec 25, 2014 4:03pm Dec 25, 2014 4:03pm
Quoting gnlazarus
thx guys.. so, its depend on the timeframe i want to use.
Yes. But not just time frame you want to use, i.e. H1 or H4, or D1, but for how long you want to hold your position, where your SL would be, and what your profit target is.

I mean, I know some traders who trade off of H4 and hold for weeks or months. But you could also trade H4 and only hold for several days.
  • #9
  • Dec 25, 2014 4:04pm Dec 25, 2014 4:04pm
Quoting benaiah
{quote} No problem. I see your point, in that you just look at the swing highs and lows, which I agree with, but I don't think it answers the question, and you acknowledged in your post the uncertainty as to whether you understood the question. Again. No problem. So, it is definitely relevant to time, and very important to consider that. If one doesn't understand how time should relate to swing highs/lows, then they would have this type of question. The question was specific to the "time" factor. I don't think saying that it doesn't matter is a...
  • #10
  • Dec 25, 2014 4:05pm Dec 25, 2014 4:05pm
Quoting gnlazarus
{quote} haha.. both of the answer quite relevant to the question even it is not truly what im looking for.. yeah, thats the thing i want to ask exactly. however, the things about the timeframe both of u are talking about make sense and i could accpt that. thx btw.
Yep, if you are looking for a specific number of days or candles, there is no answer to that. It would depend on price movement, and the time it takes price to move, and all the other stuff I already posted about.
  • #11
  • Dec 25, 2014 4:08pm Dec 25, 2014 4:08pm
Quoting benaiah
{quote} Yep, if you are looking for a specific number of days or candles, there is no answer to that. It would depend on price movement, and the time it takes price to move, and all the other stuff I already posted about.

This is the point I was trying to make :-)
  • #12
  • Dec 25, 2014 4:20pm Dec 25, 2014 4:20pm
Quoting srt
{quote} This is the point I was trying to make :-)
Okay. I probably sounded like I was jumping all over your post. Sorry about that, just trying to explain how important time is, and how to manage it. I probably didn't explain it well, anyway.
  • #13
  • Last Post: Dec 28, 2014 12:10pm Dec 28, 2014 12:10pm
Are you looking for a tool that does something like this?
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDDaily.png Size: 47 KB
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