What time frame do you trade
- Thread starter jammin
- Start date
I think dhana sekar got it right, and as an extension, and the comment traderbas made is highly pertinent.
I believe the mistake many traders make is thinking they made a particular trade, and they are supposed to hold on to it for an x period of time.
I'll give some examples. I mentioned in another thread that I see Nifty dropping to 5222, and that is when it was trading in the 6000 range. It was clear to me based on what my methodology was telling me on the weekly and monthly TF's.
OTOH, I took a short on the EUR/USD at 1.3827 hoping this would be the reversal in the big picture. Key word-- "hoping". At this point, I have to be flexible enough in my thinking about the position. Simply put, the weekly chart is not convinced, but the 4-hour and daily is telling me we are headed to at least 1.3728. I may have to settle for the 99 pips, but I'm still hoping for 600 pips.
You can get yourself in a trap by thinking I only trade from one TF. As an example, a favorite setup may exist on the hourly, while there is still overwhelming evidence against that on the 4-hour and the daily.
The trader needs a confluence of evidence, and needs to pay attention to what is going on with the other charts. We were discussing that in the chat on my blog yesterday when the EUR/USD was in the low-- 1.3700's and climbing. Someone said that the Euro was going to reverse at that point because he noticed there was divergence on the 15-min. That is an extremely weak selling point for a reversal. As it turned out, the EUR/USD continued to rise to my entry on the short.
Nothing is cut-n-dry in trading. It is a student's world to an art form.
I believe the mistake many traders make is thinking they made a particular trade, and they are supposed to hold on to it for an x period of time.
I'll give some examples. I mentioned in another thread that I see Nifty dropping to 5222, and that is when it was trading in the 6000 range. It was clear to me based on what my methodology was telling me on the weekly and monthly TF's.
OTOH, I took a short on the EUR/USD at 1.3827 hoping this would be the reversal in the big picture. Key word-- "hoping". At this point, I have to be flexible enough in my thinking about the position. Simply put, the weekly chart is not convinced, but the 4-hour and daily is telling me we are headed to at least 1.3728. I may have to settle for the 99 pips, but I'm still hoping for 600 pips.
You can get yourself in a trap by thinking I only trade from one TF. As an example, a favorite setup may exist on the hourly, while there is still overwhelming evidence against that on the 4-hour and the daily.
The trader needs a confluence of evidence, and needs to pay attention to what is going on with the other charts. We were discussing that in the chat on my blog yesterday when the EUR/USD was in the low-- 1.3700's and climbing. Someone said that the Euro was going to reverse at that point because he noticed there was divergence on the 15-min. That is an extremely weak selling point for a reversal. As it turned out, the EUR/USD continued to rise to my entry on the short.
Nothing is cut-n-dry in trading. It is a student's world to an art form.
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