How well does swing trading techniques on longer time frames correlate to intraday time frames?
- Thread starter Bugsy
- Start date
Theoretically, I don’t see why this wouldn’t be easily attainable, though to be honest with you, I did it the other way around.
Let me preference what I’m about to write by stating up front that a number of contributors to this website have tried to convince me that my theories are based on a bunch of bunk, but from my perspective, the key to success is to keep your moving averages relative.
In other words, for example, if you rely on a 10-period SMA for the trend on a 60-minute chart, that would translate to a 40-period SMA on a 15-minute chart, or a 120-period SMA on a 5-minute chart, etc.
You could add in additional MAs when using the lower time frame charts for greater detail and precision if you wish, but to translate your swing trading expertise down to intraday trading, it’s important that you maintain (transfer) those higher time frame “guide posts” on (to) the lower time frame charts.
Of course, you have to get the math right when switching from a daily context down to 4 hours or less. But hypothetically, it ought to be possible.
Let me preference what I’m about to write by stating up front that a number of contributors to this website have tried to convince me that my theories are based on a bunch of bunk, but from my perspective, the key to success is to keep your moving averages relative.
In other words, for example, if you rely on a 10-period SMA for the trend on a 60-minute chart, that would translate to a 40-period SMA on a 15-minute chart, or a 120-period SMA on a 5-minute chart, etc.
You could add in additional MAs when using the lower time frame charts for greater detail and precision if you wish, but to translate your swing trading expertise down to intraday trading, it’s important that you maintain (transfer) those higher time frame “guide posts” on (to) the lower time frame charts.
Of course, you have to get the math right when switching from a daily context down to 4 hours or less. But hypothetically, it ought to be possible.
You should backtest your swing trading strategy for intraday trading to answer your own questions.
wrbtrader
My experience, conventional daily bar swing chart strategies do not work on intraday systems.
EOD appears to have defined trends which are longer bar by bar and behave more 'predictably', whilst intraday appears to have more trend randomness, support and resistance broken more frequently.
EOD is easier to trade using conventional TA rules, intraday appears to defy logical TA rules.
My 2c opinion only.
I believe that for the most part markets are fractal, so structures and formations on a chart showing 200 daily bars will replicate on a chart showing 200 4hr bars or 200 1hr bars or 200 5min bars.
But there is a real difference between bars that take account of or ignore quiet market periods. So how much reliance would you place on some intra-day forex bar formation that sets up while only Sydney is trading or while only Tokyo is trading?
But there is a real difference between bars that take account of or ignore quiet market periods. So how much reliance would you place on some intra-day forex bar formation that sets up while only Sydney is trading or while only Tokyo is trading?
This is a solid point. When I traded futures, even though crude oil may be running 23 hours a day on market days there is a huge difference between USA market hours and the rest...HUGE difference.
Long term, short term... EXACTLY THE SAME. Only difference is in the "period". Shorter terms are much more manic and noisy. In longer term plays, many/all of the "counters" are "presumed to be noise" and are ignored... not always beneficial.
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Bugsy, if I look at a daily chart, I see the same setups I take intraday, using "techniques" you've mentioned (e.g. price action, MA lines).
However, as a swing trader, you have the benefit of time to make sure the next signal "checks all of your boxes". You can make the bulk of your decisions when the market is closed, and this helps to keep emotions in check.
As a day trader, you need to be able to recognize your signals and make decisions without hesitation or doubt, as time is of the essence.
When you have a string of losers, if you begin to feel emotional pain, you need to be able to trade through it. There is no market "pause button" to regroup and collect your thoughts, and if the inevitable frustrations cause you to steadily deviate from your plan, you won't survive as a day trader.
In summary, there are certain behaviors which swing trading does not call upon, but that are essential to daytrading. I'm thinking a successful daytrader would have an easier transition to swing trading, than vice versa.
However, as a swing trader, you have the benefit of time to make sure the next signal "checks all of your boxes". You can make the bulk of your decisions when the market is closed, and this helps to keep emotions in check.
As a day trader, you need to be able to recognize your signals and make decisions without hesitation or doubt, as time is of the essence.
When you have a string of losers, if you begin to feel emotional pain, you need to be able to trade through it. There is no market "pause button" to regroup and collect your thoughts, and if the inevitable frustrations cause you to steadily deviate from your plan, you won't survive as a day trader.
In summary, there are certain behaviors which swing trading does not call upon, but that are essential to daytrading. I'm thinking a successful daytrader would have an easier transition to swing trading, than vice versa.
Totally agree with this ... it also depends on your nature ... swingtrading demands lots of patience which can be a good thing or not ...