Multiple Time Frame Confirmation

How many of you use multiple time frames to confirm the trend? For example if u are trading a 15 min chart then u use the hourly or four hour chart to establish the trend and only trade the 15 min in that direction. I can see how that makes alot of sense but at the same time it could be argued that what does a 240 chart have to do with what the 15 chart is doing? It takes quite a few 15 min ticks to make up one 240 tick, and by the time a few 240 ticks have occured the 15 could have done all sorts. Should the 15 not be traded on its own price action alone?
Also, if you do use the higher timeframe for confirmation, what frame do u use in relation to the timeframe being traded and why?


Im not arguing one way or the other, just wanted to put it out there to see what other have got to say...

....what does a 240 chart have to do with what the 15 chart is doing?

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It is all to do with alignment of multiple time frame cycles which when align dramatically increase the probability of a successful trade. Check out the posts of Grey1 who demonstrates this on a consistently profitable basis.


Paul

Trader333 said:

It is all to do with alignment of multiple time frame cycles which when align dramatically increase the probability of a successful trade. Check out the posts of Grey1 who demonstrates this on a consistently profitable basis.


Paul

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very true. good post.

i suggest drawing a matrix where you have

_______ week day 4hr 1hr 15m
week
day
4hr
1hr
15m

fill it with trend bias (method unimportant)

you will find a system that keeps you out of trades that shouldnt be traded.

j

I must admit, this is something that has interested me. What puts me off is the prospect of putting in an awful lot of work, and not finding any significant improvments.

But - eg. Only taking trades on a H1 chart, in the direction of the H4 trend, does in theory sound to make sense though...........

JTrader said:

I must admit, this is something that has interested me. What puts me off is the prospect of putting in an awful lot of work, and not finding any significant improvments.

But - eg. Only taking trades on a H1 chart, in the direction of the H4 trend, does in theory sound to make sense though...........

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Hi JT,

This is significantly important. Most traders dont have the patience or psyche to trade the trend in one timeframe, it always summons up fears of missing out which trigger an endless chain of emotions.

The approach of trading smaller trends within a trend is imho the best way to day trade. Its not as much work as you may think, what you have said above would take no more than one minute max.

Thank you

Citizen2007 said:

Hi JT,

The approach of trading smaller trends within a trend is imho the best way to day trade. Its not as much work as you may think, what you have said above would take no more than one minute max.

Thank you

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What, do you mean it would take 1-minute max to code this reference to a higher timeframe into a strategy in Metatrader4, TS8.2 etc?

JTrader said:

What, do you mean it would take 1-minute max to code this reference to a higher timeframe into a strategy in Metatrader4, TS8.2 etc?

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Sorry JT,

I did not see that you were a legendary member and have lots more experience than i had given credit for. I misunderstood your post as saying it would be too much work to analyse using this approach.

I now understand you were coming from a programming perspective, so i cannot say. i am not familiar with these languages.

But i use metatrader, and all my programming is done in excel and linked to it. Totally automated.

Please forgive my overlook.

Citizen2007 said:

But i use metatrader, and all my programming is done in excel and linked to it. Totally automated.

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Hi Citizen......... (or should that be "Hail!")
Interested to read what you have written about DDE from MT4. I have just started doing this, using the information primarily to enable me to get equal risk positions across different currency pairs.
However, looking at the information available in MT4, I can only see "Bid", "Ask", "High of the day" and "Low of the day" values. Are you able somehow to get lower time frame values, say 1 hour and 4 hour highs and lows?

Fish said:

Hi Citizen......... (or should that be "Hail!")
Interested to read what you have written about DDE from MT4. I have just started doing this, using the information primarily to enable me to get equal risk positions across different currency pairs.
However, looking at the information available in MT4, I can only see "Bid", "Ask", "High of the day" and "Low of the day" values. Are you able somehow to get lower time frame values, say 1 hour and 4 hour highs and lows?

Click to expand...

It is possible to get lower timeframe values, how it is done it couldn't say.

I had my link programmed about 18 months ago. I have no knowledge of programming unfortunately so cant be very helpful. But there are some great programmers out there on some these websites like scriptlance etc. I just placed a posting there and had a few replies from people who wanted the work. Messages to my old programmer dont seem to be going through, maybe he got banned or something but i am looking for a new programmer.

Sorry i cant be of any more help.