It is the same with longer and shorter time frames. Active traders Poll - share your live experience or read what others have to say. For novice traders the concepts of multiple time frames can be very confusing. Like other smart trading decisions you use the time frame that best works with your trading style and system. There will be times where you will have to drive northward or southward in order to end up west. There will be less trading opportunities.
Sep 29, · Hello In this thread I will share with you my trading strategy which I use in D1, H4 chart. This strategy is very simple and you have to learn it through practice.
But you can use the M15 and the M5 to show you a better entry or exit point. Knowing how to read the different time frames will also help you decide the best trading plan and what kind of trader you are. Scalpers look for quick, small trades. They will not be trading on the M30 or H1 time frame because they create new candles or bars too slowly to know what is happening minute by minute.
A scalper sticks to short time frames like the M5. An intraday trader will stick to the H1, or in some cases the H4 time frame, for their systems, because the moves are slower but bigger.
Swing traders like the really big moves so they like to use the D1 or possibly the W1 time frame, depending on their trading strategy. More trade opportunities by only needing to hold a trade a short term. The trades are small and more numerous, so your fees will be higher due to frequent trading. Moves happen so fast it can be easy to get stopped out by spikes and small reversals.
The trading will be intense due to quick short moves and the need to have amazing timing. You will be able to use solid trading methods and have time to analyze the trades. You will still have opportunities for multiple trades within a day. Moves are slower and you can usually see reversals or stalls and have time to react intelligently. You will still have more trading fees because of frequent transactions. Your entry and exits may not be as precise.
The chance to look at longer term trends and make larger amounts of pips. Less likely to get stopped out because of reversals or sudden market changes. You have more time to watch the trade and make wise, less emotionally driven decisions. Not as many trades made, so you will have less transaction costs. There will be less trading opportunities. Trades will be held overnight so you are subject to those fees.
With less trading opportunities you need to make sure your system works really well on the longer time frame, as you will naturally get fewer setups while swing trading.
There is no right or wrong, best or worst trading chart time frames to trade on. Like other smart trading decisions you use the time frame that best works with your trading style and system. The 1hr is set next is the 15min timeframe, a close above all my SMAs will mean BUY, takeprofit should be between 70pips to pips and stoploss should not be more than pips.
I will advice that you manage your risk as this is not holy grail but i bet, only patient minds will enjoy it. Hi - Was just wandering if anyone has tried this system and how were the results??? I see this was posted over a month ago - Has anyone got any feedback??? Thank you james for sharing this strategy. Edward do you have any thoughts?? Does anybody know the average number of enteries that this system will give?? Thats the only was stochastic should be used. You get a very good stuf to learn what is, and how to trade Divergence!!!
Active traders Poll - share your live experience or read what others have to say. Forum What is Forex? Who's online There are currently 8 users online. Submitted by User on July 23, - Submitted by James Hello and good afternoon, This article will focus more on a low-risk divergence trading with the Stochastic Indicator and good entries with simple moving averages.
I will also appreciate it if you understand the risk warning below: THE TRADING PLAN Stochastic Indicator, if you study well, whipsaw alot in the lower timeframes, say from 1 hour and below, even higher timeframes too whipsaw but you can take advantage of the whipsaw or trending mood of the stochastic from the daily timeframe and above. Your 15min Chart should be as indicated below: Below, Chart price broke my red line but stochastic lines not breaking my lines Below Stochastic Line broke my line and chart price did not The two example above shows the trigger, and more pressure for price to go in the divergent direction and in the lower timeframes - you should plan entry as discussed below.
The next step is to watch stochastic in the 1hour timeframe and make sure the stochastic goes below to the 20 level zone then mark is as shown in the chart below: The 1hr is set next is the 15min timeframe, a close above all my SMAs will mean BUY, takeprofit should be between 70pips to pips and stoploss should not be more than pips I will advice that you manage your risk as this is not holy grail but i bet, only patient minds will enjoy it.
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Complex trading system #16 (Divergence Trading - D1) This article will focus more on a low-risk divergence trading with the Stochastic Indicator and good entries with simple moving averages. For a quick understanding of divergence as a forex term please click here before you continue. Trade better, manage risk strategia earn more with our automated forex trading software. We perform analysis at the opening of the current forex on the chart D1. Still trade D1 . Understanding Trading Chart Time Frames If you open up a Forex trading platform you will probably see a set of tabs that look like M1, M5, M15, M30, H1, H4, D1, W1, and MN. What these tabs do is to set your trading window to a particular time frame ranging from 1 minute, all the way up to one month.