Trading in lower timeframes

Trading in lower timeframes require more expertise. In lower timeframes market is more volatile. New traders should trade on higher timeframe. Once you are accustomed to higher timeframe, you can come to lower timeframe.

Yes I agree with you. In lower time frame there is more noise and traffic. That's why price move forward and backward. That's why people do over trading and open lot of unnecessary trades. It also leads them to bad habits.

It’s difficult to trade in the lower time frames because the market is more volatile in this case.

Lower timeframe is essential to get more accurate information about price action. However, timeframe depend on trading strategy.

when starting a trade, you must be sure that you understand what you are doing and how it works.

Sometimes it all depends on experience, and sometimes it all depends on the specific situation, because you can see the perspective where no one sees it...

Such trading has its advantages, you just need to be able to use them.

Maveswyn posted:
Sometimes it all depends on experience, and sometimes it all depends on the specific situation, because you can see the perspective where no one sees it...

I agree with you. It is all about how well you understand the market.

With practice, you begin to understand it as if intuitively.
You understand more or less exactly when to 'fight', and when to take a step back.
And when you get to this stage, you realize that you're moving in the right direction.

Both are useful to trader. Lower timeframe means more volatile, useful if you are experienced scalper.

Michihito posted:
Once you are accustomed to higher timeframe, you can come to lower timeframe.

Very important to note. I hope people are paying attention to this

When you are trading on lower time frames, you must be ready to deal with noise and traffic.

I disagree. Trading lower time frames like a 1 minute chart, there ton's of trends that on higher time frames are not there. A higher time frame could be range bound, but a 1 minute chart, there is trends galore. The problem traders have is they use market orders to enter. This is a huge mistake! Always use entry stop orders to enter. If you have a stop order to buy, and the market go's down, your trade never gets filled and you don't lose money. Trail a buy entry stop order above declining prices, and in time the market will reverse and move higher, your buy stop will be filled and will show a profit within a few minutes if trading on 1 minute charts.

Lower time frames are specifically used for short term trades like intra day trading, scalping etc. Lower time frames generally help you to confirm the on going trend that you observe in higher time frames. Along with it, you a trader uses them to ascertain their entry and exit points.

Selecting a timeframe is of great importance. And this must be understood when choosing a strategy or approach.
But even if you choose something like this, it's worth it to you to
- try it out on a demo
- analyze results
- make a final decision.

I think lower time frames consist of maximum unexpected market shifts. Lower time frames are not quite helpful for understanding the overall trend and market flow as a result traders might get wrong ideas about the market situation.

Yes, the volatility is something every trader has to deal with when trading in lower timeframes. It requires good skills and expertise, as you pointed out.

Medium-term timeframes usually choose scales from several hours to a daily segment. There are numerous strategies for daily timeframes and therefore you can always make a profit here

Starcliff posted:
Medium-term timeframes usually choose scales from several hours to a daily segment. There are numerous strategies for daily timeframes and therefore you can always make a profit here

You are right. Day traders often use hourly time frames like H1. H4, H12 etc.