Time frame trading strategy
Contents:
If you wanted your trades to last wks what time frames would you trade off? Trade Journal:- last 2 months I have been religiously maintaining journal to analyze performance. I realized that my hit ratio as well as performance is way better on Daily over intraday or small timeframes. Usually i try to book out at I mostly trade Indian market.
Really appreciate your effort, Rayner.
- What is the Best Time Frame to Trade Forex?!
- Different time frames in trading.
- Trend Rider indicator.
- Multi timeframe analysis helps you stay open-minded.
This article speaks to me directly … I will put every thing to practice. Rayner- very good article. I just received your book too!! Super excited. What time frame would be best. Hour or day still? I fine it works best for me. I just decide to go with a higher time frame and have the peace of mind. Fewer trades, but I feel more in control so far the results are better Thank You. Swing trader with some position trades — allow a swing trade to run… but I trade agrressively… Only take a trade that looks high probability and take a very large position. If trade does not go in my favour within an hour or so after entry I exit trade do not wait for stop loss.
What Does Time Frame Mean in Forex trading?
As a not the greatest thing that helped me was reviewing my trades.. I followed all the other rules but did not really review. The first detailed review I ever did was after a 5 month period of trading and it was an eye-opener. Thanks Rayner for sharing this useful article, God bless you and give you much years to live and give you more power to produce more helpful articles.
Hy Rayner, am just new in trading. I trade the daily charts for two years now and I can say it helps me a lot. I have noticed that my stops are usually over pips on most markets but I can accommodate that with good risk management. Thank you very much for your ever insightful guides. What is Trade View?
Is it a special software and if so, how do i access it? Thank you very much Rayner. This information was very usefull for me. Could you share some tips, how to create and update watch list of stocks or markets? I am the follower of your you tube channel and now reading the articles in your website to improve my Forex trading knowledge. So If I want to open and close the position in a day, what is the time frame is best suited for me. Which Time frame I need to use for analysis and trade. Because I try to use the MA as you suggested, but when the Time frame is changed the results are confusing.
So please need your advice. Actually I was doing trading in my live account and lost the money, so now spending my time to understand my mistakes. High-quality trades enjoy confirmation from different analytical methods. Other than varying your trading tools, you can also look for confirmation from a higher time-frame. This is why multiple time-frames analysis is a popular method among swing traders. Using multiple time-frames in your market analysis is a simple way to align yourself with the big picture.
A general rule is that the longer the. › › Technical Analysis Basic Education.
For technical trading, this approach translates to having various charts with each chart showing a different time-frame. Each time-frame dilutes your attention. And it takes great effort to relate different time-frames to one another. Yet, as a trader, both your attention and effort are limited. It uses only the simple moving average SMA and price action candlesticks operating on two time-frames. Hence, the daily time-frame is our primary window of analysis.
The pros and cons of the various day trading chart time frames
The weekly chart then offers us a big picture view. The slope of the period simple moving average SMA is a straightforward way to observe the trend. Hence, we will use it in both time-frames. In the charts below, the top panel shows the daily bars, and the bottom one shows the weekly bars. On the weekly chart, three bars formed entirely above the SMA. It was a clear sign of bullish momentum on the higher time-frame. On the daily chart, prices stayed above the SMA for 19 consecutive bars.
The sustained bullish price action was undeniable. In fact, we have a separate article that elaborates on the idea of swing trading while working full time! Thanks to compounding, a difference of a few percentages will have a huge impact on the final results if you just let the capital sit long enough!
Of course, trading the daily timeframe also has its disadvantages. The most common objection people have to trade daily bars, is that you keep the positions overnight. When the market is closed, you cannot get out of your positions in case of some type of black swan event. You will have to wait until the market opens, and by then it might be far below your stop loss. The risk of overnight gaps indeed is true.
Still, this is pertinent to all types of trading, and not only the daily timeframe. Trading daily bars means that you, in general, have fewer trading opportunities in any given instrument.
Quite on the contrary, if there was one rule that held true, it would be that the more selective you are with the trades you take, the more profitable they will be. Instead, most of your time will be spent waiting for the right signals. You will be scanning through a huge list of stocks only to find those few that are worth your time.
Combining this with having 2, 3 or even more strategies, will ensure that this never becomes an issue. Instead, you get the huge advantage of having so many options that you can afford to be highly selective and only pick the absolute best trades! You may have noticed that we to some extent refuted the negative aspects of the daily timeframe, and instead turned them into advantages. As such, you should focus on the trading strategy. And trading strategies are much easier to find on the daily timeframe than on shorter timeframes. In addition, daily strategies tend to be more robust than intra-day strategies.
The top-down approach is a much more objective way of doing your analysis because you start with a broader view and then work your way down. Many traders use price charts of their chosen instruments to figure out entry and exit signals, buy and sell points and where to set stop-loss and take profit orders. At the same time, a day trader who holds positions for hours and rarely longer than a day would find little advantage in daily, weekly and monthly arrangements. Why we wait for a breakout? As a result, it is necessary to possess a clear comprehension concerning forex trading time frames right from conducting trades. You basically want to enter the market , make a few dollars , exit and then go through the same process again. Select personalised ads.
We recommend everyone who is new to trading to start with swing trading on daily timeframes. Once you want to go more advanced, there is no question that algorithmic trading is the way to go! So, you feel like you want to start trading daily bars.
