New traders start out with an attraction to the lower timeframes.
They think, they will "miss out" if they do their analysis on anything higher than a 5min chart.
They are smart enough to see the issues and noise associated with trading on lower timeframes. They want the cleaner, clearer signals that higher timeframe signals provide, but their mindset is stuck on the scalper's aggregations.
The market is a tough taskmaster. To succeed. traders make a choice. They either accept that they are scalpers which means eschewing most of the indicators on this forum; in favor of pure price action.
Or they embraced their technical chartists leanings;
They create good basic strategies on their three timeframes.
1. They verify their long-term trend on their highest timeframe.
2. Then do their in-depth chart analysis with at least THREE non-collinear indicators on their trading chart which is their middle timeframe.
3. And only then, start looking at their lowest timeframe for entry using price action.
If you are having difficulty having consistent profitable trades, make sure that you are doing your analysis starting at your highest timeframe and working down to your lowest. Not the other way around.
They think, they will "miss out" if they do their analysis on anything higher than a 5min chart.
They are smart enough to see the issues and noise associated with trading on lower timeframes. They want the cleaner, clearer signals that higher timeframe signals provide, but their mindset is stuck on the scalper's aggregations.
The market is a tough taskmaster. To succeed. traders make a choice. They either accept that they are scalpers which means eschewing most of the indicators on this forum; in favor of pure price action.
Or they embraced their technical chartists leanings;
They create good basic strategies on their three timeframes.
1. They verify their long-term trend on their highest timeframe.
2. Then do their in-depth chart analysis with at least THREE non-collinear indicators on their trading chart which is their middle timeframe.
3. And only then, start looking at their lowest timeframe for entry using price action.
If you are having difficulty having consistent profitable trades, make sure that you are doing your analysis starting at your highest timeframe and working down to your lowest. Not the other way around.
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