Multiple Timeframes

[athlonmank8]

Quote from Xspurt:

This is correct. Start with the largest and work to the smallest. If you are trading a 1M chart you must know the significance of the 1 and 4H charts. The number of charts you view will depend on your ability to relate one chart to another and using too many to begin with will throw you into confusion.

There is no way a single chart can provide the structural information that multiple time frame charts can.

 

[bone]

Let me just say here for the record that using multiple timeframes does not by default require Fibo, wave counts, MT4 (whatever that is), or any sort of voo doo. I really don't know how all of that becomes a requisite for using multiple timeframes effectively.

 

[TheRumpledOne]

There is only one true chart. The 1-tick chart. All the other charts are DATA COMPRESSION of the 1-tick chart.

Some state that anything less than 60 minutes is "noise". Guess what - the 60 minute chart is made up of all the ticks that happened during those 60 minutes. Does that mean if you use 30 minute charts then suddenly all of those ticks become noise? That's absurb!! If 1-tick charts are noise because they are less than 60 minute charts, then all charts are noise because noise + noise = more noise. Therefore, there is no "noise" when it comes to trading charts.

The problem is you have been led to believe in a "myth". The truth is PRICE IS THE SAME ON ALL CHARTS. The daily open is the same on all charts. The previous day's close is the same on all charts. "Mythical" things like moving averages or conceptual things like trend can change when you change time frames. I prefer to trade using HORIZONTAL LINES based in REALITY and statistics that analyze price movement.

You can search elitetrade for my thread.

 

[bone]

Quote from TheRumpledOne:

There is only one true chart. The 1-tick chart. All the other charts are DATA COMPRESSION of the 1-tick chart.

That is certainly true in the sense that data is data.

It's what you do with it that really matters.

There is no singular, definitive way to analyze that data or indeed to trade the markets. If you have twelve different successful traders, chances are they are looking at twelve different timeframes in twelve different ways and for that matter they are almost certainly trading twelve different strategies.

 

[Redneck]

Quote from slavduja:

Anyways, how does one measure noise??
How would you quantify noise?

Thanks

An untradeable mish mash of back and forth price action

You get pulverized, whipsawed, and broke

AKA Barb Wire

It’s like a rattlesnake – you can see lots of snakes.., but should you ever come face to face with a rattle snake – you’ll know it

=============================================================================================

Aside

What RCG and X have stated about multiple time frames is golden

MTF benefit will become evident once you can reference a smaller time frame… and visualize what the higher time frame candle is going to look like while it is forming

That skill is money


RN

 

[slavduja]

Quote from bone:

That is certainly true in the sense that data is data.

It's what you do with it that really matters.

There is no singular, definitive way to analyze that data or indeed to trade the markets. If you have twelve different successful traders, chances are they are looking at twelve different timeframes in twelve different ways and for that matter they are almost certainly trading twelve different strategies.

Bone you are a spread trader right. Do you trade strictly reversion to the mean commodity ratios or do you also trend follow spreads (difference between two commodities)?
Also do you use daily bars or some other period bars??

 

[slavduja]

Quote from Wallace:

NT 7: multi Data Series - timeframes - setup:
Menu/File/New/Chart: in Data Series window, dbl clk on 6E , set Type to 15 min
set Session template to 24/7 , OK
from chart, Menu/Data Series icon, as above with Type 5 min and Visual/Panel and
clk on 1 , repeat for 1 min
if using a Chart Template, apply to first chart, and adjust each new Data Series after
being applied to the chart

slavduja, while your original question has been about Multiple Timeframes, the question
is stretching into 'how to trade a price movement'
RCG Trader wrote " . . . the waveform you are in."
the basis of my understanding, analysis and trading any price movement has been
developed over many years, after first reading in 1980
'Elliott Wave Principle: Key to Market Behavior' by Frost and Prechter
the problem with Elliott Wave being unreliable, is, the price movement is IRREGULAR
and it's not therefore possible imo to predict the forthcoming wave formation

what Does work for me is the fibonacci ratio
using the Fibonacci 'Retracement' tool for price targeting based on the fibo levels -
when the price / wave hits a fibo level it may interact with it - end / change direction
so just drawing a fibo on the H-L of a wave is a fug of a lot easier than trying to EW
the wave, and much easier to trade with

the markets now run 24 hours each trading day
there are 288 - 5 min price bars in a 1 bar 24 hour day
if your trading session is 8 hours, there'd be 96 - 5 min bars in the 8 hours
480 - 1 min bars in the 8 hours
depending on your location, you may or may not be trading during the New York
session 8am-4pm EST, only significant because the majority of the trading volume
occurs between 7-10am EST

large price moves are Not linked to the high volume period, they can and do begin
and/or end at any time
also, while one may be able to time target the end / start of a wave, it may not occur
during one's trading session
as said, I believe individual tfs are discrete, and thereby tradeable, provided one has
an understanding of the overal trend and where the tf being traded fits within the trend

a 5 and 1 min chart is attached to illustrate the simple, basic use of fibos, Standard
Error Channel, and 8 hour trading periods in terms of the 2 tfs
chart program is MetaStock which has for me the best fibo tool, only because I can
use it for C/R fibos as well as P fibos and add / remove fibo levels (the tool re-sets
to a default with each new use) and which I prefer to the Fibonacci Extension tool
however, one still has to make some sense of
'waves'

Thanks Wallace, very informative.

 

[slavduja]

Quote from TheRumpledOne:

There is only one true chart. The 1-tick chart. All the other charts are DATA COMPRESSION of the 1-tick chart.

Some state that anything less than 60 minutes is "noise". Guess what - the 60 minute chart is made up of all the ticks that happened during those 60 minutes. Does that mean if you use 30 minute charts then suddenly all of those ticks become noise? That's absurb!! If 1-tick charts are noise because they are less than 60 minute charts, then all charts are noise because noise + noise = more noise. Therefore, there is no "noise" when it comes to trading charts.

The problem is you have been led to believe in a "myth". The truth is PRICE IS THE SAME ON ALL CHARTS. The daily open is the same on all charts. The previous day's close is the same on all charts. "Mythical" things like moving averages or conceptual things like trend can change when you change time frames. I prefer to trade using HORIZONTAL LINES based in REALITY and statistics that analyze price movement.

You can search elitetrade for my thread.

TRO, you're spot on. 1tic chart is purest and provides most data points, which in statistics is essential for accuracy.

 

[bone]

Quote from slavduja:

Bone you are a spread trader right. Do you trade strictly reversion to the mean commodity ratios or do you also trend follow spreads (difference between two commodities)?
Also do you use daily bars or some other period bars??

We use several timeframes, and our models can use just about anybody's charting platform that will accomodate custom synthetic spread combinations, exchange-supported spreads, and custom studies. We also use multiple timeframes simultaneously.

 

[Eight]

A man with two watches will never be sure what the time is..