Time Frames, Trend Trading and Pull Backs

D

dines55

Good Morning EliteTraders,

What is your opinion on smaller time frames being used to identify the beginning of a pullback in a trend trade? for example, if the daily time frame shows a strong trend in one direction, is it advisable/possible/resonable to look at the hourly chart for pullbacks that might not be visible on the daily chart? My overarching goal here is to find reasonable entry points to "catch the train" on already established trends. Something I find difficult is looking for indications that I am not jumping on at the end of the line.

Thanks!
 
Almost all of my trades, whatever is behind them, are trend-following. Most of them are off the D1 charts and for these I never look at a lower time-frame. Sure, you might occasionally catch an earlier entry, but obviously this would be capped to less than 1 day's range. Whereas by waiting until the end of the day, although I surrender part of the day's range in profits, my trades should be higher probability as I have confirmation of a full day's price action.
 
Imo, not really.

for example if I see a strong breakout in daily chart like three strong bars going up and I see the next day has a pullback one bar down then buy it that's your pullback, if you're waiting for some kind of setup on a smaller time frame chart you're going to miss so much and you're over complicating it.
 
I pretty much trade these days of M1 and 4Lwma direction, if 4lwma is going up then I look for a pull back go long make some pts and get out and repeat.

If the market is down on the day I trade mostly short and vice versa, but that is all I do.
 
Hourly is too long IMO. Better is 12-24-36, 5 minute bars. Get better resolution into an hour or three of trade action. Just combine them in your mind*. But you did not say what you are looking for in the bars.

*This is a very basic skill.
 
danielc1 said:
Seeing a clear trend on a higher time frame and looking for a low risk entry on a lower time frame is a valid strategy.
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Exactly;
but you got the right order to identify a good trend/higher time frame first.[IF i wanted max slippage+ smaller profits/larger confusion, i would start+ stick with hourly candles]
And FEB tends to be much different from NOV....................................................
Actually, hourly [or 61 minute] candles look fine with 20/20 hindsight/LOL.

I'M glad i printed a weekly chart/half hour candles of good trending QQQ/ it went down , then up to $30.00/33.00,bear market of 2000-2002;
but its now about $300.So one has to consider the risk of missing most of the move/profits.
 
MarkBrown said:
i would forget all that but to satisfy the mind you have to explore.

search 3/8 and T-Line trading methods...
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I have done some searching and found some info on these strategies...do you have any literature/articles, etc... that you know of that would be beneficial? In the end, it seems that this is just a simple moving averages cross...why these two periods (3/8). Thanks again!!!
 
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