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Trading the Different Time Frames

 
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joaneckhardt

Trading the Different Time Frames

I have always been a scalper, but Kevin Pyne has introduced me to swing trading.  I was particularly impressed by the quote, "Scalping for income, swing trading for wealth."  I had always felt that when I let a trade run overnight, I would lose control and lose money.  However, I finally realized that the important thing is to trade the chart you are looking at.  I was getting confused about what type of trade I was making - scalp or swing - and which trime frame I wanted to use.  I know that sounds pretty dumb, but it was a real problem for me. I sat down and studied the different time and price cycles between the minute, hourly, and daily charts.  I also found that I use my indicators a little differently in different time frames.  My biggest challenge has been, be clear about what time frame chart I am trading, and how long I intend to hold the trade. Also, I am focusing on staying with my strategy and not changing my mind mid-stream.

Wed, 07/31/2019 - 12:01pm
 
photoguyJeff

joan,
very interesting. Can you give me details about the swing trading you are doing? Best of luck to you. Thanks.
Jeff

 
Rookie

Joan, you might like, https://apiaryfund.com/forum/ride-wave, Allen is a super trader!

You might also check out "trend trading"

However without going thru all the whys just use the 4Hr chart with S & R, measure you target and SL and hit enter.

 
triguylm1

Joan, swing trading Forex includes short term oscillating market conditions; thus, the wobble Technic. And the intermediate trend swing measured off the H1 chart.

Also, consider the long term possibility looking at H4 chart price patterns. So chart patterns include H&S tops and bottoms, ABCDE Elliot Wave patterns, Up or down Channels, Price range patterns and Price Expansion making new pivot highs and Pivots lows just to take out everyone's Stop Loss orders> Due to extreme volatility.

 
FrankS

I'm a firm believer in the old adage that all markets appear as a fractal, but assuming a strategy can be used on all timeframes is misguided. Beyond Forex, I trade stocks, options, and futures, so I am a witness to the fact that Forex is definitely different in its dynamics. Yeah I know, on the surface it appears the same as a futures (24-hour) chart, but "surface" is the keyword. The similarity ends there. Heck, I see differences between NQ and ES futures.

Point: I firmly believe one has to develop a method specific to the timeframes that one is trading; that is IF you want a robust method. One method does not automatically fit all. Elements often have to be tweaked to maximize performance.

 
luisamlindholm84

Joan, I had the same problem as you before. And I thought that scalping only done in smaller time frame. But it is not true because we can do scalping in bigger time frame too.

In Bee line course there are many time frame combinations we can choose. The course has help me a lot to find what I really love to do.

I love to scalp because I can do it very fast, at in any time frame and I don't need to be nervous to wait and think of what happens to my trade. But I start to practise it in smaller time frame.

 
robunited

FrankS

"I'm a firm believer in the old adage that all markets appear as a fractal, but assuming a strategy can be used on all timeframes is misguided"

I also hold that believe.

If you have a strategy based on a specific pattern. You now see the same pattern on a M5 or M30 vs on the Daily TF
... what's the difference?

To me, the difference is that every market in a different time zone shows very different behaviors.

Asian Open different to EUR Open different to UK Open different to US Open ...

A pattern on a M5, M30 TF only plays in that current market which is open, often of course overlapping.
Some patterns play better in specific timezones.

The same pattern on the Daily get's created involving all market participants throughout the complete 24 hours.

There definitely is a different dynamic at play for certain patterns ... they don't scale 1:1 across all time frames / time zones.

Just my opinion ... doesn't need to be right or wrong.

 
FrankS

Robunited is spot on regarding timezones vs, behaviors. (And I thought I was the alone in thinking that way.) As an example, an H4 chart can easily reflect the three timezones, but it may not always align with the opening of each zone. An H1 is likely the best option as it evenly segments trading periods that relate to the zones. Besides, it allows you to see the changes in market behavior in terms of multiple bars as opposed to just one or two with the H4. After a few days watching, you can see patterns form that are regional and often repeatable; at least you can read and know which trading zone is responsible for kicking off a directional change; and that is a key part of your time-trend projections. In fact, placing vertical timelines at the open of each timezone tells a great story such that you may not need the daily news.

However, if you are trading the M1 for entries, for example, you can still place envelopes, bands and moving averages, etc. on the M1 to reflect higher timeframes without having to open a separate chart. But you can do that with any lower timeframe chart of your liking. That method gives you the best of both worlds plus in greater detail. The only downside is the limit on how far back you can go with the data. An M1 vs, M15 vs. H1 is a good expansive combination, in my opinion.

One last sharing note: I trade EUR/JPY but my strategy has to morph a bit depending on the timezone that I'm trading it. For example, when Asia opens, I sense one type of price dynamic (more overall consolidations) and another for the London session and a different dynamic when London closes and only the US is open.