Day trading, significant levels, & timeframe

[schizo]

Is anyone able to tell me whether or not it's also worth looking at lower timeframes like 4 hours or 1 hour timeframes 4 significant levels when day trading?

Considering that there's only approximately 6 hours (or 6 hourly bars) in a trading session, it's not practical to daytrade using 1 hour chart. Using 4 hour chart would be suicidal. You must remember that, by definition, daytrading is closing any open trade(s) before the close.

 

[Sekiyo]

There are always % movers to be found if you are looking for them.... this is one of the scans i use intraday and what it shows from market close.

View attachment 300162

When i hear crypto kiddies talk about stock traders not being able to handle volatility i laugh...

Most of these stocks gapped up,
I like to scan for % based on open.

Vs from previous close.

 

[KCalhoun]

Problem with cheapie premkt gainers is inconsistency.... pop n drop, halts etc

I like high volume high volatility etfs like KOLD/BOIL, SOXL/SOXS etc

 

[traderjoe200]

FNGR is an outlier.
Same as HKD

Went into HKD at 50 but sold way too early.
I missed FNGR. Looking for the next one ..

Are you mainly shorting ?
Or longing Momentum ?

Found it tough to chase right from the open.
Sometimes there is some follow through
But 95% of the time the stock stall.
Or worse … reverses.

Looking for a setup on MANU lol

I remember SYSX went up 800% intraday
OTC stock trading 26M dollar that day.
April 14th 2022

Some nice plays there and there,
But some nasty ones also.

MANU hit my scan on volume,...will be watching for the set up..... the pink bars are color coded that reflects meeting my scan conditions

 

[traderjoe200]

Problem with cheapie premkt gainers is inconsistency.... pop n drop, halts etc

I like high volume high volatility etfs like KOLD/BOIL, SOXL/SOXS etc

I agree 100% - Hence why i generally don't trade them. 30min range breaks from the open is my preferred weapon for the volume scans

 

[dominover]

No. Because of the way candlestick are formed, the time frame is arbitrary relative to price action. As such, a 2.5 hour candle might be "significant" one day and not another. In general you are looking for a granularity that will show the S/R regardless of the time frame. Anything over 15 minutes is going to cover up significant action that is relevant.

I.e what you want to do is start with smaller time frames, and then build up the larger time frames in "your minds eye" to id the significant S/R. Don't chase timeframe=key indicators. That is not how candlestick are intended to be used.

Great answer, thanks!

 

[dominover]

"the time frame is arbitrary relative to price action"

brilliant statement unfortunate few get it, probably the most significant truth for today's trading.

I agree, good point.
These are the kind of answers and confirmations I am looking for.
They help build perspective.

 

[dominover]

4 hours vs daily is not such a significant departure if you're comparing something traded just during just regular hours, but is a much more significant aberration if you're comparing it to a 23-hour-a-day future. That said, it totally depends on what you're doing and if your signals are based on respective relationships of movement over time, or some other criteria.

Thank you!

 

[dominover]

There are always % movers to be found if you are looking for them.... this is one of the scans i use intraday and what it shows from market close.

View attachment 300162

When i hear crypto kiddies talk about stock traders not being able to handle volatility i laugh...

Yes when I ask a question about cryptos amongst the crypto forums I'm often it with the, "well you have to do the correct analysis" arguement. Then proceed to ask them what that is and nobody answers.
I do admit though that on the less popular cryptocurrencies they are highly manipulated, and trading signals just are not reliable at all.
It is the exchanges that are the problem. There's so much intervention and algos running on these dodgy exchanges that I simply don't trust trading the lower alt coin cryptos anymore. Equity market signals are far more reliable in my opinion, thankfully!

 

[dominover]

Considering that there's only approximately 6 hours (or 6 hourly bars) in a trading session, it's not practical to daytrade using 1 hour chart. Using 4 hour chart would be suicidal. You must remember that, by definition, daytrading is closing any open trade(s) before the close.

Of course, I totally agree, and that's the sole basis for my question.