What's the best timeframe for using TA?

Peter8519 said:
Since we do not know what the price will be tomorrow, so we try to predict it was past data. The saying goes... the market always repeat itself. So we employ various strategies using past data to predict the future price which is what back test essentially is. With the power of modern PC, it's not difficult to test various strategy from simple to very complex ones. I look at daily charts every day and all seem random. Occasionally, I see one or two that trend... ah ha... I jump it. Sometimes, after I jumped in and the trend broke the very next day. It is just a bet after all. You win some and you lose some. Hopefully, you win more than lose. We just have to accept that the market will be the final judge.
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I build homes for a living. That is not random. I know the costs going in, and I know what the house should sell for assuming there's no downturn in the market while I'm building.

And the market would have to crash about 30% before I break even.

I can't do anything that is like gambling. I need to find out if there's a way to increase odds because with the high leverage, there are good returns to be made.
 
There is no such thing as "best timeframe". TA is fractal.

You can start with daily and weekly charts. Ultimately your choice of timeframe will be predicated on what sort of trader you become (day, swing....etc) and how often do you want to be staring at a screen. There is a lot of work ahead for you. Timeframe is really not an issue for you at this stage.
 
ctheo1 said:
There is no such thing as "best timeframe". TA is fractal.

You can start with daily and weekly charts. Ultimately your choice of timeframe will be predicated on what sort of trader you become (day, swing....etc) and how often do you want to be staring at a screen. There is a lot of work ahead for you. Timeframe is really not an issue for you at this stage.
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Is there a reason I can't just set stops and limits when I place the trade?
 
farmerjohn1324 said:
I build homes for a living. That is not random. I know the costs going in, and I know what the house should sell for assuming there's no downturn in the market while I'm building.

And the market would have to crash about 30% before I break even.

I can't do anything that is like gambling. I need to find out if there's a way to increase odds because with the high leverage, there are good returns to be made.
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There is no sure thing in stock. During the sub prime crisis in 2008, home price crashed too. If there is such a sure thing in the stock market, then it would be the "holy grail." Since this thread is about TA, a screen for the number of days a stock that stays above a particular simple moving average(I use 50 days MA) is not a difficult task. Do this for the entire database and compile a frequency plot by days. This will give a rough idea where is the entry point. No stock will stay above a moving average forever.
 
farmerjohn1324 said:
Is there a reason I can't just set stops and limits when I place the trade?
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i don't understand the question. stop and limit setting has nothing to do with choice of timeframe. these are determined by your broker/platform.
 
ctheo1 said:
i don't understand the question. stop and limit setting has nothing to do with choice of timeframe. these are determined by your broker/platform.
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You said how often do I want to be staring at a screen. I can definitely place limit orders so it sells when it hits a certain price.
 
farmerjohn1324 said:
You said how often do I want to be staring at a screen. I can definitely place limit orders so it sells when it hits a certain price.
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"how often you stare at the screen" means that if you trade the daily chart, you really only need to look at the screen once a day (the closing price), the weekly once a week etc......

but before you start trading you need a process in place that makes sense to you and clearly identifies entries and exits. this can be fundamental, TA, combo or whatever works for you. good luck.
 
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