Resolved Question
How do shorter time frames offer better entry levels compared to longer time frames?
For example if I trade based on the 4 hour chart, why is it that taking a look at the 1 hour chart will help me visualize a better entry? After all, looking at a shorter time frame , don't they depend on the same S/R levels as say the 4hr chart?
Someone please explain to me how looking at a shorter time frame helps me "time" my entries better...
thanks for your help guys and gals....
happy trading!
over 2 years ago
Best Answer - Chosen by Asker
Longer-term time frames are typically used for gauging the general trend of the currency pair. After that, you can zoom in to a shorter-term time frame and put up some Fib levels. Minor support and resistance levels could also be seen better on shorter-term time frames because that's where all the intraday "noise" can be seen. In other words, the daily candle can just show one candle for the entire day but the 1-hour chart can show the fluctuations and consolidations that took place during the entire day.
over 2 years ago
Answers (2)
Looking at different time frames for a better entry is nothing but myth. After you have defined you S/R levels, only price can tell you where you think you could enter. Price on higher time frames is the same as price on lower time frames. Now dont get me wrong, smaller time frames can give give you more detail when it comes to market movement, but never forget that it is the overall market trend that makes money, not any individual time frame!! GOOD LUCk.
over 2 years ago
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You could use the smaller time frames to see price action more clearly. For instance, you want to buy the GBPUSD pair because the daily chart shows a doji on a support level while the oscillator indicates oversold conditions. What you can do is zoom in the hourly chart to see how candles are looking to pinpoint a better "cheaper" buy price.
over 2 years ago
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