Time frames and indicators

[bognerje]

Hi,
New to the forum, new to Forex. Been reading up the last few weeks and am still a bit confused on the difference between the 1min, 5min, 15min charts etc... I plan to scalp/day trade for now; what would be the best indicators and chart times?

If say the 60min chart is more accurate then the 1min chart, what benefit is it to look at 1min charts. Guess im missing something on the charts!

If there is a link from a prior thread please attach. i didnt see anything that stood out so i just started a new thread.

thanks,

 

[rathcoole_exile]

typically the shorter the time frame (TF), the shorter the range (hi-lo) of the recent (and hence forthcoming ?) price movement.
your targets and safety stops are likely to be adjusted according to the range - no point hoping for 50 points profit in an average 10 point range
equally, you wouldn't necessarily want to place a 50 point safety stop if all you can hope for is +10 if your trade goes well

therefore the TF can often have an impact on your decision making process.
if you're happy scalping for 10 points here and there with, say, a 5 point safety stop, you can trade on a lower TF and take multiple trades throughout the day
if you prefer less trades and to aim for say 50 points profit with a 20 point stop, you'll maybe look at longer TFs which provide a suitable range

new traders often opt for the first choice, the quick scalp on low TF.
bearing in mind that:
commissions and fees will kill you,
it's very stressful and
more trades means more opportunities to screw up, this is usually fatal to a newbies account.

imho, settle back, prepare to be patient, bored even and start off on daily TFs or at worst 4 hours

 

[Dinos]

Hi,
New to the forum, new to Forex. Been reading up the last few weeks and am still a bit confused on the difference between the 1min, 5min, 15min charts etc... I plan to scalp/day trade for now; what would be the best indicators and chart times?

If say the 60min chart is more accurate then the 1min chart, what benefit is it to look at 1min charts. Guess im missing something on the charts!

If there is a link from a prior thread please attach. i didnt see anything that stood out so i just started a new thread.

thanks,

I day trade the ftse and use 2 timeframes, the 15min for direction/momentum and trend and then takes all trades off the 5 minutes chart in the direction of the 15, staying with the trend at all times, let it happen then look for an entry. As for indicators, thats really up to you, what your happy with, if your a true newbie, then I suggest use the MACD on a larger t/f 15 or 30 mins, whilst a lagging indicator, its not wrong for long and then on a smaller t/f, eg 5 min, use a set up which complements/confirms trades in the direction of the macd until the macd momentum slows, starts its change. IMHO Stochastic based systems are better, as they are leading indicators, getting in near the begining of a move, however, unless you are experienced, it may be harder to grasp, whatever you choose, test it, again, again, and again and demo run it before you put money behind it is all I can advise, good luck

 

[rathcoole_exile]

Bog,
forget indicators. you don't need any .....

really...

 

[Dinos]

Bog,
forget indicators. you don't need any .....

really...

Bog, each to their own, I like indicators, (Hope your well rathcoole, haven't spoke for a while)

 

[bognerje]

Rathcoole, No indicators, seriously? So what is your method?

When you guys say daytrade vs scalp, its still short time frames. Lets say i plan too trade the LONDON market whic for me will be 2am since im CST until 6am when i get ready for work; could i technically daytrade still or would i have to scalp?

​

Bog,
forget indicators. you don't need any .....

really...

 

[karl6666]

indicators

Bog, each to their own, I like indicators, (Hope your well rathcoole, haven't spoke for a while)

As a novice or beginner you can become obsessed with indicators and gadgets, maybe we are looking for the formula in flashing lights to make you rich.

My tip would be to pick a currency pair and watch price action on the daily, then hourly charts maybe 15 mins, look at the way the market is buying and selling across the world, the market place, its people buying and selling stuff for profit, keep it simple

Karl

 

[rathcoole_exile]

Rathcoole, No indicators, seriously? So what is your method?

I draw a couple of horizontal lines at certain price levels and then, depending where price is relevant to those lines, I will go long or short once price crosses or touches the line.
audio alerts on the horizontal lines means I don't need to constantly monitor the charts, but I can often set the trade up in advance and not even look at the chart.
With this approach TF becomes completely irrelevant. Either I get triggered or I don't...

When you guys say daytrade vs scalp, its still short time frames. Lets say i plan too trade the LONDON market whic for me will be 2am since im CST until 6am when i get ready for work; could i technically daytrade still or would i have to scalp?

you're talking 24hour forex ?
If I were you I'd look at a 4 hour chart.
if a trade (whatever criteria/indicator you use) presents itself, all well and good. if it doesn't, don't force the issue and wait til the next day

 

[rathcoole_exile]

(Hope your well rathcoole, haven't spoke for a while)

well you've been conspicuous in your absence mate !

 

[bognerje]

Your probably right, i have metatrader and esignal software right now. the more i read it seems the more indicators i am supposed to know etc..

Since i work 7-5pm CST, i miss the NY trading time so i plan to trade the EUR/USD starting at 2am.. want to be in a market that is more volatile then say the JPY which i believe would finish up around 8pm for me.

I pretty much understand Stochastics, MACD, Parabolic SAR.. i just dont get what the difference is between the chart timeframes

I need to learn EMA/SMA too..

As a novice or beginner you can become obsessed with indicators and gadgets, maybe we are looking for the formula in flashing lights to make you rich.

My tip would be to pick a currency pair and watch price action on the daily, then hourly charts maybe 15 mins, look at the way the market is buying and selling across the world, the market place, its people buying and selling stuff for profit, keep it simple

Karl

 

[karl6666]

Your probably right, i have metatrader and esignal software right now. the more i read it seems the more indicators i am supposed to know etc..

Since i work 7-5pm CST, i miss the NY trading time so i plan to trade the EUR/USD starting at 2am.. want to be in a market that is more volatile then say the JPY which i believe would finish up around 8pm for me.

I pretty much understand Stochastics, MACD, Parabolic SAR.. i just dont get what the difference is between the chart timeframes

I need to learn EMA/SMA too..

Why bog?

 

[rathcoole_exile]

Karl,
you can lead a whore to culture but you can't make her think.

no sorry, that's supposed to be about a horse, right ?

 

[bognerje]

I figure the more i know, the better i can gauge what works for me..

i have read on other sites, some people like trends and candlestick patterns, some like the 15min, 60min, daily charts, some like MACD and Stochastics, some use EMA/SMA..

Its more out of curiosity. I have a practice account. I plan on trying a few peoples "styles" and see if i understand them, if it fits my style, timeframe i plan to trade and currency. No one reason why i would or wouldnt try to learn. I am a novice so i certainly take the opinion and recommendation of those who are successful serious.

I thank everyone for the replies btw.

[/U][/B]

Why bog?

 

[karl6666]

losers

Karl,
you can lead a whore to culture but you can't make her think.

no sorry, that's supposed to be about a horse, right ?

Hey bog, have a look at one of my old posts, its really quite splendid
'that 95% loser buzz', then make your comments.

buying and selling remember.......... make a profit, bag the cash, wait for the next batch, you will never be skint taking profit

all indicators to me are a slower version of whats at the top half of the screen. Im quiet interested in the ancient candle formations, 400 year old theories from japanese rice traders, its a good start combined with s/r levels

Karl

 

[bognerje]

karl
I will have a look, thank you. Thank you everyone.. i will get this and then hopefully be able to contribute back..

Jeff

Hey bog, have a look at one of my old posts, its really quite splendid
'that 95% loser buzz', then make your comments.

buying and selling remember.......... make a profit, bag the cash, wait for the next batch, you will never be skint taking profit

all indicators to me are a slower version of whats at the top half of the screen. Im quiet interested in the ancient candle formations, 400 year old theories from japanese rice traders, its a good start combined with s/r levels

Karl

 

[nine]

More is less in trading.

The big movers in the business (the ones that cause the market to move) are not looking at a whole bunch of indicators. Your goal is to parasitically benefit from the moves they create.

So why not look at what they look at.

1hr or 4hr or 1 day charts (or swap between them)
horizontal lines to represent zones of support and resistance
maybe a couple of trendlines or lazy trendlines (emas) if they are weak like me.

They're looking at the chart to decide where price is likely to stop. Or if it doesn't stop is likely to truck on through to the next point. Teach yourself to see what they see and to get on the train.

Pictures courtesy of Sierra Chart and IB

.

 

[karl6666]

9

More is less in trading.

The big movers in the business (the ones that cause the market to move) are not looking at a whole bunch of indicators. Your goal is to parasitically benefit from the moves they create.

So why not look at what they look at.

1hr or 4hr or 1 day charts (or swap between them)
horizontal lines to represent zones of support and resistance
maybe a couple of trendlines or lazy trendlines (emas) if they are weak like me.

They're looking at the chart to decide where price is likely to stop. Or if it doesn't stop is likely to truck on through to the next point. Teach yourself to see what they see and to get on the train.

Pictures courtesy of Sierra Chart and IB

.

well said 9, just what I was thinking

Karl