Going to smaller timeframes, is it worth the effort in the end ?

What is your favorite timeframe ?

  • Total voters
    24
As an outright futures trader, I use range bars. You have asked a variation of this question 3 times so far. YOU have to figure out what timeframe YOU are comfortable with. It all depends on what product you are trading and what your "edge" is. I suspect you are somewhat new to trading so my advice is to settle on a product and watch the market. You will likely determine your preferred timeframe based on this.

One thing I am sure of is that there is no "right" way to trade and no "perfect" timeframe.
 
The problem is that you can keep pealing layers of the onion if you drill down.

If you use ticks on ES what about order book?
If you use ES order book what about the options chain?
If you use the option chain what about the option chain order book?
If you use the option chain order book what about the tick of the underlie cash index calculated in real time as fast as you can?
Even if you get that far, what about the order book on all 503 stocks that ultimately ES is a derivative of?
503 options chain, 503 option chain order books...

For me, without having a team this is an intractable problem so the only solution is bigger moves that span multiple days, weeks or months.
 
nrstrader said:
The problem is that you can keep pealing layers of the onion if you drill down.
For me, without having a team this is an intractable problem so the only solution is bigger moves that span multiple days, weeks or months.
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%%
LOTs of tear$ shed on peeling onions\ great illustration:D:D
MOST of the millions made + more/\ are done with investing + larger times frames\
+ market makers + specialist$ ..... can doVery well with bid\ ask.
Even though i did not vote/ i'm sure not a market maker , with all due respect;
+ no disrespect intended for MM or specialist$..........................................
I like,love the way MMs sometimes gun for resting orders, targets:caution::caution:
 
Sprout said:
1) Yes, the limits keep you with the higher TF bias, therefore increases your probability.

2) To start you can use any 3 TF frameworks. The concept is what you want to focus upon, not the exact TFs.

If weekly trades -> H12, H8, H4
If daily trades -> H1, m30, m15
or
D1, H4, m30, then drill down into m5-m1 looking for tighter entries.
Again it's the concept, not a rigid framework.

One can drill down to sub-minute is you are that ADHD.

3) If you are trading HTFs, then monthly charts should be included. Focus on where the PWL/PWH's and PDL/PDH's are and annotate these levels on your chart. Also including the significant TF open. eg. To form my weekly bias, I'd look at Daily's, their relevant levels and the open of the previous week and the upcoming week.

4) Depends on your skill level. Contra-trend trading is more advanced. If the dominant trend is evident on the weekly as a short, then the contra-trend bullish daily are where to look for short entries. Since you are looking at the weekly, those days that comprise it can be divided into bullish and bearish moves of the weekly candle. Knowing where your weekly open is then gives you an idea of where the daily is seeking liquidity.

What beginners do is neglect the HTF bias, see a bullish day forming, go long on a breakout but book a loss when the trade goes against them as the market has a continuation not a change in HTF bias. The only event where this is not the case is for a reversal. It's true that all reversals can be traced to a 5m bar but it's just not that simplistic.

PA is fractal, so whatever your frame is, it can translate to other frames.
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@Sprout -- Another BRILLIANT post. Thanks
 
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