Multiple time frames....bad for me?

C

cashmoney69

I've narrowed it down, as to why I'm still not pulling out money

each week from the markets, and its because I'm having a hard

time grasping multiple time frames. I dont know why, but it

SHOULD be easy. I've been trading off multiple time frames ever

sinse I started trading, I've read "Trading in the zone" more

than once, I dont use indicators any more (except for a 50sma

that I ignore most the time anyway).


I understand that:
1. Long term charts are used to see direction of the market
2. Short term are used for execution

Maybe looking at 1hr, 4hr, daily, weekly charts is just TOO

much??? ... is it important to look at these?...I would think so,

sinse most my trades span hours, to days..so the confusion

comes in when:

weekly charts are down
Daily charts are up
4hr charts are up, but more choppy
and 1hr charts are sideways to moving down

DOES ANYONE here on ET trade successfully off ONE time

frame?...I'd love to do this if others have as well.
 
Unless you are swing trader or a trader scalping for ticks you must use multiple time frames.

Why don't you read the AHG thread ? Most of what you must do Anekdoten revealed at the end of the thread. That journal changed my trading around.

Use the anchor chart to determine the main trend.

Then you must wait for price to get to key areas of support and resistance of the big time frame, since entry charts are full of noise and most areas are meaningless unless they got meaning in the anchor chart.

Once price gets there you wait for the immediate trend to fail and you resume the anchor trend obtaining killer risk vs reward.

In short, you are a trend trader on the anchor chart, a counter trend trader as you wait for price to reverse on the entry chart, and a trend trader as your new trade develops into new higher highs or lower lows.

Good luck.

Susana
 
Quote from SusanaDT:

Unless you are swing trader or a trader scalping for ticks you must use multiple time frames.

Why don't you read the AHG thread ? Most of what you must do Anekdoten revealed at the end of the thread. That journal changed my trading around.

Use the anchor chart to determine the main trend.

Then you must wait for price to get to key areas of support and resistance of the big time frame, since entry charts are full of noise and most areas are meaningless unless they got meaning in the anchor chart.

Once price gets there you wait for the immediate trend to fail and you resume the anchor trend obtaining killer risk vs reward.

In short, you are a trend trader on the anchor chart, a counter trend trader as you wait for price to reverse on the entry chart, and a trend trader as your new trade develops into new higher highs or lower lows.

Good luck.

Susana
More...




I respectively disagree. Micro/Macro on the SAME time frame is the only way I have found to keep from being sliced to death when the market is in the process of changing trends, or worse yet, consolidating due to market participant indecision. IOW, once the market begins to change trend, the larger fractal will have you going AGANST the CURRENT trend on the lower fractal throughout the transition. Larger fractals are effective at finding major areas of support and resistance, and that is where using different fractals ends. Entries and exits should be taken from one time frame only. :D

Cashmoney is beginning to see the proverbial light; otherwise he would not have presented the question. He knows he is seeing something that goes against traditional wisdom, yet has doubts about what he is seeing. Trade what is in front of your face now, not what happened in the past, regardless if you're scalping for pennies, trading for dollars, or holding for eternity. Most people fail at trading; many people use multiple fractals to trade from. Hello!!!! :confused:

Disclaimer: For the majority of ET members who are successfully using multiple timeframes and netting millions of dollars annually, the above does not apply to you. Therefore, no response is warranted. Nonetheless, please say hello to Dorothy and Toto for me. :)


st
 
Multiple time frames are bullshit. One confirms the other, which confirms the other, which confirms the other, blah blah blah. By the time you make your move you're too late. They create nothing but confusion, as the original poster is finding out.
 
Quote from cashmoney69:

I've narrowed it down, as to why I'm still not pulling out money

each week from the markets, and its because I'm having a hard

time grasping multiple time frames. I dont know why, but it

SHOULD be easy. I've been trading off multiple time frames ever

sinse I started trading, I've read "Trading in the zone" more

than once, I dont use indicators any more (except for a 50sma

that I ignore most the time anyway).


I understand that:
1. Long term charts are used to see direction of the market
2. Short term are used for execution

Maybe looking at 1hr, 4hr, daily, weekly charts is just TOO

much??? ... is it important to look at these?...I would think so,

sinse most my trades span hours, to days..so the confusion

comes in when:

weekly charts are down
Daily charts are up
4hr charts are up, but more choppy
and 1hr charts are sideways to moving down

DOES ANYONE here on ET trade successfully off ONE time

frame?...I'd love to do this if others have as well.
More...

If you trade short term, not holding positions for more than 2-3 days max, you might hurt yourself by looking at longer timeframes since it baises you to go long or short based on weekly trends and you miss sharp counter trend rallies.
RK
 
A big problem that new traders have is looking to just look at other time frames to convince themselves that their losing trade will be ok, they do the same with indicators. There is nothing wrong with using different time frames and I do the same myself a lot, but it needs to be before you enter a trade rather than whether to stay in the trade. It gets too emotional then.
 
Nicely said RC. The key would be in knowing which components and areas of any time frame are important and when they are less so.

I trade the one minute. Is this optimal? No. I trade the one minute because no one has provided software that allows me to massage what someone has deemed a constant (time) any way I want.

There are many ways to look at charts - perhaps the thread instigator should incorporate more time into his price within a single fractal?
 
Quote from cashmoney69:

I've narrowed it down, as to why I'm still not pulling out money

each week from the markets, and its because I'm having a hard

time grasping multiple time frames. I dont know why, but it

SHOULD be easy. I've been trading off multiple time frames ever

sinse I started trading, I've read "Trading in the zone" more

than once, I dont use indicators any more (except for a 50sma

that I ignore most the time anyway).


I understand that:
1. Long term charts are used to see direction of the market
2. Short term are used for execution

Maybe looking at 1hr, 4hr, daily, weekly charts is just TOO

much??? ... is it important to look at these?...I would think so,

sinse most my trades span hours, to days..so the confusion

comes in when:

weekly charts are down
Daily charts are up
4hr charts are up, but more choppy
and 1hr charts are sideways to moving down

DOES ANYONE here on ET trade successfully off ONE time

frame?...I'd love to do this if others have as well.
More...

You say you don't use indicators, fine. But an indicator that I use has SPX monthly as bearish, weekly as bearish, daily as bearish.

Secondly, whatever time frame you choose, say signal is derived from 15m chart ImPO you still need your 5m & lower time frames to seek better entries. And I don't see anything wrong with monitoring what an indicator is doing on 1m chart. I have observed many calls where people enter against momentum & get shaken out. I rarely get shaken out upon entry, of course there are times when trade doesn't go my way (and I get PLENTY of those), but because I enter just prior to momentum I do get the luxury of not going through a DD straight away.

As far as emotional part (post from another poster) my take on this is that new traders put too much at stake on 1 trade (been there, done it), when it has to be a complete opposite. Because there is no multi-spreading the risk ie most new traders trade only YM or only ES, etc. they MUST be able to welcome consecutive losses, reduce position size so they can easily accept 5 consecutive losses, that way emotions stay in check & mind remains rational. Overleverage on 1 trade & you might as well get the vaseline out & bend over :)
 
Quote from JSSPMK:

You say you don't use indicators, fine. But an indicator that I use has SPX monthly as bearish, weekly as bearish, daily as bearish.

Secondly, whatever time frame you choose, say signal is derived from 15m chart ImPO you still need your 5m & lower time frames to seek better entries. And I don't see anything wrong with monitoring what an indicator is doing on 1m chart. I have observed many calls where people enter against momentum & get shaken out. I rarely get shaken out upon entry, of course there are times when trade doesn't go my way (and I get PLENTY of those), but because I enter just prior to momentum I do get the luxury of not going through a DD straight away.

As far as emotional part (post from another poster) my take on this is that new traders put too much at stake on 1 trade (been there, done it), when it has to be a complete opposite. Because there is no multi-spreading the risk ie most new traders trade only YM or only ES, etc. they MUST be able to welcome consecutive losses, reduce position size so they can easily accept 5 consecutive losses, that way emotions stay in check & mind remains rational. Overleverage on 1 trade & you might as well get the vaseline out & bend over :)
More...
Thanks JP.

I think multiple time frames rule, and you do good work in the public eye.

But there's really no need to argue about it fellas, really. :)

Good trading,

JJ
 
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