I would like to ask a question that i do not have an answer to.... just an opinion.... that seems to change alot. i am a pattern daytrader. i like to trade a retracement following an impulse move..... there are 3 different patterns i look for. they all can be seen in many many different timeframes. PERSONALLY i prefer to only trade one time frame,,,, either 3 min or 5 min.....OTHERS I TALK TO LOOK AT MANY, MANY MANY TIME FRAMES AT THE SAME TIME.I cannot really trade this way but would love to hear some good reasons why i should make the effort to take the time to learn.THANKS IN ADVANCE.
Time Frame Vs. Pattern
- Thread starter larrybf
- Start date
Larrybf:
I use a medium time frame as a filter; to get a better âpictureâ of the pattern I am interested in before surgically entering/exiting using a smaller time frame. Also, if there is setup on a large time frame, I can use it as a framework to pyramid my position using, again, the smaller time frame.
Kermit
I use a medium time frame as a filter; to get a better âpictureâ of the pattern I am interested in before surgically entering/exiting using a smaller time frame. Also, if there is setup on a large time frame, I can use it as a framework to pyramid my position using, again, the smaller time frame.
Kermit
For each instrument it has its own patterns within each time frames.
For example, you use 1-min as entry time frame, it is likely that you need at least a 5-min or 10-min chart as your signal chart. The reason is obvious - with a 5-min setup you get say at least 1 to 2 bars to ride and that translate to 5 to 10 mins to manage in the 1-min time frame.
But the 5-min setup could fail, usually that's due to a higher time frame setup that overpowered your 5-min setup. So, most daytraders watch out for say 1000-tick, 60-min, daily, weekly, etc. to avoid being "run over by the train".
For example, you use 1-min as entry time frame, it is likely that you need at least a 5-min or 10-min chart as your signal chart. The reason is obvious - with a 5-min setup you get say at least 1 to 2 bars to ride and that translate to 5 to 10 mins to manage in the 1-min time frame.
But the 5-min setup could fail, usually that's due to a higher time frame setup that overpowered your 5-min setup. So, most daytraders watch out for say 1000-tick, 60-min, daily, weekly, etc. to avoid being "run over by the train".
I prefer to think in terms of price and price levels. So if I'm looking a a 5min chart or a 10min chart the very same support and resistance levels are there. Now to more easily bring the longerterm (stronger) levels of support and resistance to your attention I view a 60min or 300 min chart to more easily view key multiday levels and trendlines.
For example, the weekly high is always the -same- price no matter what time frame chart you have in front of you.
For example, the weekly high is always the -same- price no matter what time frame chart you have in front of you.
I trade from 1m charts for entry. I use larger charts for some of the same reasons that were mentioned above. The larger the timeframe the stronger the support/resistance. Just want to make sure a setup on a small timeframe has room to run without hitting a larger timeframe supp/res.
Here is an example of going from a 5m set up to a 1m chart for entry:
http://www.elitetrader.com/vb/attachment.php?s=&postid=253873
http://www.elitetrader.com/vb/attachment.php?s=&postid=253874
Here is an example of going from a 5m set up to a 1m chart for entry:
http://www.elitetrader.com/vb/attachment.php?s=&postid=253873
http://www.elitetrader.com/vb/attachment.php?s=&postid=253874
Also, it's awesome when say a 30m, 15m and 5m are all lined up to move in the same direction. For instance, maybe a break of a 30m candle is the break of a 15m supp/res which is day high/low on the 5m. Personally I do not see these toooo often trading NQ and ES but I'm sure if one looks at many instruments it would be found just that more often. Many refer to this as timeframe sync.
One known usage of multi-tick chart is when the instrument's liquidity varies a lot intraday.
Example - E-mini ES and NQ, Forex
So, for example, ES average at least 70 ticks a minute during regular trading session. So using something like 1000-ticks is like looking at 15 min chart.
But, during after hours, the globex session is really thin, so the 1000-ticks chart becomes useful as a "corrected" higher timeframe. That in turn helps on the opening of the regular session as you can see the bigger picture better.
Lawrence
Example - E-mini ES and NQ, Forex
So, for example, ES average at least 70 ticks a minute during regular trading session. So using something like 1000-ticks is like looking at 15 min chart.
But, during after hours, the globex session is really thin, so the 1000-ticks chart becomes useful as a "corrected" higher timeframe. That in turn helps on the opening of the regular session as you can see the bigger picture better.
Lawrence