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Am I incorporating higher time frames the correct way?

  • Post #1
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  • First Post: Jun 2, 2015 4:01pm Jun 2, 2015 4:01pm
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I am starting to incorporate higher time frames into my M5 trading. My basis is that I will look for an opportunity to go long or short on the higher time frames such as H4 and Daily, and then make my actual entry on the M5 chart at the break of a trendline or at support/resistance etc; I have attached a screenshot to demonstrate what I mean.

On the H4 chart I noticed some support, and also on the Daily there is a trendline break with a pullback, so both of those charts indicating that I should be buying rather than selling. So on the M5 chart I will look for an opportunity such as support or a trendline break and make a trade. Do I have this logic correct?
There's no right or wrong way.

Yours is just a variation of the broader "usual" way of looking at timeframes. The "usual" way works for some people; for other people, it doesn't work.

Why don't you just forward test your way and find out for yourself?

If you make money, FANTASTIC!

But if you don't make money, just know that it just didn't work for you, but it MIGHT work for other people with different attitudes to risk. And that's OKAY!
I'm not trying to convince anyone. I'm not in the "convincing" business.
Your logic is correct. But you need to prove it at least in demo account first.
If you are using multiple time frames then pick your time frames and make them truly representative to each other. In other words choosing the 5 min, 4 hr, and daily doesn't really makes sense just like looking at the 1 min, 4hr, and daily wouldn't make sense. If you are looking at the 4 hr and daily charts look at the 15 min chart to find your entry.



Quoting ReyesWhite
{image} I am starting to incorporate higher time frames into my M5 trading. My basis is that I will look for an opportunity to go long or short on the higher time frames such as H4 and Daily, and then make my actual entry on the M5 chart at the break of a trendline or at support/resistance etc; I have attached a screenshot to demonstrate what I mean. On the H4 chart I noticed some support, and also on the Daily there is a trendline break with a pullback, so both of those charts indicating that I should be buying rather than selling. So on the M5...
Quoting investing101
If you are using multiple time frames then pick your time frames and make them truly representative to each other. In other words choosing the 5 min, 4 hr, and daily doesn't really makes sense just like looking at the 1 min, 4hr, and daily wouldn't make sense. If you are looking at the 4 hr and daily charts look at the 15 min chart to find your entry. {quote}
What the fuck are you talking about?

Why is any single time frame important in relation than to any other?

M15?

Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
Quoting ReyesWhite
{image} I am starting to incorporate higher time frames into my M5 trading. My basis is that I will look for an opportunity to go long or short on the higher time frames such as H4 and Daily, and then make my actual entry on the M5 chart at the break of a trendline or at support/resistance etc; I have attached a screenshot to demonstrate what I mean. On the H4 chart I noticed some support, and also on the Daily there is a trendline break with a pullback, so both of those charts indicating that I should be buying rather than selling. So on the M5...

H4 candles can be loaded by way of ambiguity. Reason being...if your broker doesn't open at the exact market bell, this candle will be more broker based than will be market.

This is what lends itself to the ambiguity and confusion of working with that one specific candle.

The daily can have the same issues, again, broker dependant, but there are enough indicators to allow you to set your daily candle to the market clock and allow you to observe a proper NY roll.

IF you are going for comparison trading, you are looking by way of supply and demand zones, the open and close of these candles can show how well they are respected by way of market.

Watch how an M1 candle will react in relation to open if is above or below the line...by being below an hourly open, and having a trend side down, you can follow the direction and even use this specific line as a stop loss or trend change value.

These same rules apply very well to the daily candle.

Simply observation of NY roll and following this directionally on any time frame lower can allow you a lot of opportunities as well as still show you a very specific range for setting your stops on loss or reversals.

There are no right or wrong ways to apply time frames. No specific time frames that are more relevant than any other.

It is very specific to the optics of the individual and the time you are committing to market. Trade the M1 on the Hourly, trade the Daily on the month...all up to what you decide is the trend and where you decide opportunities present and with a lot of consideration as to your own specific tolerance on what you are willing to risk, for the size of the rewards you would like to see.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
If you have a multi time frame strategy it wouldn't make sense to use a 9 minute, 10 minute, and daily chart would it? Just like it wouldn't make sense to be using a 5 minute, 4hr, and daily.

Spacing your time frames effectively increases the effectiveness of your strategy.
Quoting Magix
{quote} What the fuck are you talking about? Why is any single time frame important in relation than to any other? M15?
Quoting investing101
If you have a multi time frame strategy it wouldn't make sense to use a 9 minute, 10 minute, and daily chart would it? Just like it wouldn't make sense to be using a 5 minute, 4hr, and daily. Spacing your time frames effectively increases the effectiveness of your strategy. {quote}
So, what you are saying is that you have the inability to apply shorter time frames to the larger. That's fine.

You cannot micro analyse a chart and believe that others probably can't either.

This is your understanding and application. Specific to you.

I didn't say you have to trade differently than you currently are, but using your specificity as an absolute is pure horseshit.

Now, which broker is it that you have that has an M9 or M10 chart as a standard?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
I am not saying you have to use a 15 min, 4hr, and daily. I am saying space your time frames as close to evenly as possible. Tradestation BTW


Quoting Magix
{quote} So, what you are saying is that you have the inability to apply shorter time frames to the larger. That's fine. You cannot micro analyse a chart and believe that others probably can't either. This is your understanding and application. Specific to you. I didn't say you have to trade differently than you currently are, but using your specificity as an absolute is pure horseshit. Now, which broker is it that you have that has an M9 or M10 chart as a standard?
Here is an M1 chart with the daily super imposed.

Tell me you can't see supply and demand based on just the open of the daily candle.
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Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
Quoting investing101
Tradestation BTW
Sorry to hear that.

Good luck to you, anyway.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
Thanks guys. I see what you all mean. I'm going to try looking at a M5, H1 and H4 template Maybe.
Quoting Magix
{quote} What the fuck are you talking about? Why is any single time frame important in relation than to any other? M15?
rat
  • Post #14
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  • Last Post: Jun 4, 2015 10:36am Jun 4, 2015 10:36am
IMHO, lower time frames are dominated by technicals caused by market psychology whereas higher time frames are more dependent on economic fundamentals.
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