Does TA work better or worse on lower or higher time frames?

[murray t turtle]

Geez, Tom ... as much as I respect your posts (and that's a lot) ... I'm going to dissent strongly from your opinion, there: all my own trading (both earlier on in my career, as an independent trader, and now as an institutional one) is strongly related to support and resistance - however local - and that's certainly TA, and it's equally certainly a whole lot more than "running averages over market action" (which I don't do at all).





I'll agree with that part.

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Several reasons it [TA+ moving averages....,..] may not work as well /practical profit on 5 minute candles charts, 5 minute barcharts.

[1] More Slippage with 5 minutes, smaller time frame= more slippage.Add more for leverage.
[2] More commissions/slippage with 5 minutes+ its partly why so many lost money trading smaller time frames.
[3] 5 minutes of data could easily be slightly more than 5 minutes.

[4+5] Market makers/specialists know TA ;so could be useful for some, for smaller time frames.

 

[iamnewuser911]

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Several reasons it [TA+ moving averages....,..] may not work as well /practical profit on 5 minute candles charts, 5 minute barcharts.

[1] More Slippage with 5 minutes, smaller time frame= more slippage.Add more for leverage.
[2] More commissions/slippage with 5 minutes+ its partly why so many lost money trading smaller time frames.
[3] 5 minutes of data could easily be slightly more than 5 minutes.

[4+5] Market makers/specialists know TA ;so could be useful for some, for smaller time frames.

Can you elaborate on Point 3? Data that chart didn't capture?

 

[misterkel]

if you study how to hedge longer term trades,

Looking for something like this - where can I study it?

 

[murray t turtle]

Can you elaborate on Point 3? Data that[ 5 minute] chart didn't capture?

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NOT just that, some manager said CHK which he had recommended ''long as a long'' went up 7%/+ one day'' even if i mad a bottom still below $5+ it gets much worse on 5 minute charts. NOT a stock tip, but 5 minutes closes on KEM are almost 1% different , on 3 different charts services.Mabe not as bad on SPY

 

[Handle123]

Looking for something like this - where can I study it?

Unfortunately, I never could find any other than simple approaches in option books, took decent amount of time, 3 years, and much back testing to work at it by myself. And once you find different ways, you can understand why there are no books on it.

 

[baro-san]

TA works on all time frames, but you have to consider their particularities, and your strengths, then adopt and adapt. For example:

• A 100 times larger time frame's volatility isn't also 100 times higher; only about 10 times.
• Swing trading is highly sensitive to intraday gaps.
• Intraday volatility has a bathtub shape (slower in the middle, higher around the open and the close).
• Very fast time frames become inefficient due to slippage.

 

[Xela]

• A 100 times larger time frame's volatility isn't also 100 times higher; only about 10 times

Apologies for the argumentative tone, but this really isn't right: the relationship between volatility and time-frame is a square-root one, not a logarithmic one as your statement perhaps implies. (Call me pedantic, but every time you double the periodicity of the time-frame, the volatility "should" - as a mathematical abstract - not necessarily fully accurately, of course) increase about 1.4-fold, that number being the square root of 2.0. The volatility of a time-frame 100 times higher should therefore be about 14 times higher, not 10.)

 

[baro-san]

Apologies for the argumentative tone, but this really isn't right: the relationship between volatility and time-frame is a square-root one, not a logarithmic one as your statement perhaps implies. (Call me pedantic, but every time you double the periodicity of the time-frame, the volatility "should" - as a mathematical abstract - not necessarily fully accurately, of course) increase about 1.4-fold, that number being the square root of 2.0. The volatility of a time-frame 100 times higher should therefore be about 14 times higher, not 10.)

That's what I meant: square-root ... Isn't 10 the square-root of 100?

 

[bone]

I think you'll find that most technical studies seem to make more sense and have less noise on longer time frames. Might I suggest Weekly ?

As an aside, a long time ago I used to day trade using 360 minute timeframes. How 'bout that ?

 

[baro-san]

I think you'll find that most technical studies seem to make more sense and have less noise on longer time frames. Might I suggest Weekly ?

As an aside, a long time ago I used to day trade using 360 minute timeframes. How 'bout that ?

I agree that weeklies are cleaner, just I wouldn't call that "noise". To trade them you need to be able to stomach large stops, large drawdowns, isn't it? Also, the potential return is smaller. You pay something to get something.

360 min (aka 6 h) suggests that you weren't differentiating between "regular trading hours" and "after hours". In my opinion those are different animals. I believe that "regular hours' dailies are easier to trade than 360 min charts (a regular session is 6 h 45 min).