Quote from achilles28:
Sounds like you two are on to something.
The way I look it at, the market is fractal in nature. Each nested fractal exhibits a "faster" cycle rate then the next. All fractals trend, up or down. The lower the time frame (second charts), the faster the cycle or trend speed. The higher the time frame (minute to hourly charts), the slower the cycle or trend speed. The problem with fast cycle rates, is dominant thrusts in each trend aren't large enough to overcome slippage + spread + acceptable profit. Iow, I trade only off 1 minute and 5 minute charts. Maybe a 30 second in a very fast market. Anything less under these conditions, you will get chopped up. Another way to consider all this, using another prism, is volatility. Ideal time frames are really an expression of market volatility. Fast markets = high volatility = suited for faster time frame. Slow markets = low volatility = suited for slower time frame. As volatility picks up, it becomes more profitable to trade off the 10 - 30 second chart. But not now.
It can be confusing as volatility (ideal time frame) can change throughout the day. For example, the first hour open in ES YM futures (9:30 - 10:30 am) then last 45 minutes (3:30 to 4:15) , volatility is traditionally high. A faster time frame is more appropriate (15-30 second). But then, volatility slows down considerably, and if a trader stays on the 15 sec or 30 sec chart, they get chopped. At that point, under lower volatility, switch to a 1 or 5 min chart etc. This is how I trade.
I would finally add, that under todays range-bound market, a 1 hour chart timeframe misses a good portion of the intra-session movement. We're not getting the huge 1000 pip swings in forex, 100 point ES moves, like we did in the past. Dailys and hourlies catch those. We're getting alot of mean reversion, range-bound activity punctuated by the odd long-term breakout. That means traders have to drop down to lower time frames to catch more moves.
