Your Rock Lands In Water And Creates Timeframes For ThinkOrSwim

csricksdds

Trader Educator
VIP
YOUR ROCK LANDS IN THE WATER AND CREATES TIMEFRAMES

A simple tutor for new traders.​

When you drop a rock in still water, the splash point is your current candle — right now, this moment on the chart. But that splash didn't just happen in isolation. It's actually the echo of bigger waves that were already moving through the pool before your rock ever landed — the tide, the wake of bigger boats, waves from farther out. Each ring you see moving outward from your entry candle represents a bigger timeframe — 5-min, 15-min, hourly, daily — and here's the key: the bigger the ring, the more water it's pushing, the more it dictates what your little splash is allowed to do. You don't trade the splash. You trade knowing which ring you're standing inside of.

And each of those rings — each timeframe — tends to take roughly 6 to 10 candles to fully form before it hands off to the next one out.

The 6–10 candle rule specifically is a a reasonable, commonly-taught heuristic (a practical rule of thumb to make a decision quickly) which you’ll frequently see it in various swing-trading and Elliott-wave-adjacent frameworks for how many bars it typically takes to complete a leg/swing before the structure "resolves" into what shows up as a single move on the next timeframe up. The six to ten candles is a tendency, not a law — it holds up better in liquid, trending names and gets noisier in low-volume or choppy conditions. It is "usually, not always," and usually survives in context with real charts better.

Here is a simple visual with the dropped rock, expanding rings labeled with timeframes, with candle counts annotated on each ring — which gives a simple view of the process.
9Q6B9hk.png

I hope this visual helps?​
 
Last edited by a moderator:
Let’s understand time frames. Candles are moving simultaneously in all time frames at the same time. Historically we find that candles move 6-10 bars in each time frame before changing direction. The six to ten candles movement is a tendency, not a law — it holds up better in liquid, trending names and gets noisier in low-volume or choppy conditions. So if you are trading a 5 minute timeframe the candle usually changes direction every 30- 50 minutes, whereas a 15 minute timeframe changes direction every 90 – 150 minutes, etc. The earlier time frames therefore will need to work above and beyond expectation to make the next time frame higher to strengthen as it moves up the timeframe chain. Day trading a lower time frame will therefore usually move up and down faster than the time frames further out.

Each timeframe is really just a compression of the ones below it, the lower timeframes are the "engine" — they're what actually generates the moves you see on the higher timeframes. A 15 minute candle isn't a separate thing happening in isolation; it's three 5 minute candles fused together. That's why a lower timeframe has to work harder than its usual 6-10 bar tendency to actually bend the timeframe above it — one 5 minute swing doesn't move the 15 minute chart, but several 5 minute swings all pushing the same direction in sequence will.

This is why, as a day trader, you don’t need to just watch one chart — You can watch four, because each one is answering a different question:
  • The highest timeframe (Daily) tells you the overall bias — am I even looking for longs or shorts today, or is this a stock/index that's just chopping and better left alone.
  • The next timeframe down (1 Hour) shows you the levels that matter for the session — the support and resistance that price is probably going to react to today, and roughly what kind of range I should expect.
  • The 15 minute chart is where you watch for the actual shift starting to build — this is usually the first place you can see the lower timeframe "working harder than expected," which is your early warning that a real move might be forming, not just noise.
  • The 5 minute (or lower) chart is the entry timing chart. I only use it to time the trigger once the three timeframes above it already agree with each other.
The reason all four matter together is that a signal on the 5 minute chart by itself is nearly meaningless — it changes direction every 30-50 minutes basically all day, so there are dozens of them and most go nowhere. What makes one of those signals tradeable is when it's happening in the same direction the 15 minute, 1 Hour, and Daily are already leaning. When all four agree, you're not fighting the bigger timeframe's momentum — you're catching the small ripple at the moment it's being pushed by the bigger wave underneath it. When they disagree, you're just trading noise, and that's where most bad entries come from.
 
Last edited by a moderator:

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
902 Online
Create Post

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top