Trading in lower timeframes

GordonDenzil posted:
Why do experienced traders trade at a lower time frame? Is the market more volatile and profitable during lower time frames?

It is more about getting a tighter entry and increasing your risk to reward

the main thing in your understanding is this comparison, and in order for you to have it, you should try different options for work, then there will be a sense

For beginners D1 and H4 is the best. Lower time frame is very much volatile. Yes you will get the result quick. But for trading psychology plays the important role. Higher time frame helps more to build a good trading psychology. In lower time frame you tend to do over analysis and overtrade which are bad for trading.

@Akasuki Yes for new trader H4 and D1 Time frame is the best. It lets them think about the market. In lower time frame market is too noisy. Difficult for newbies to trade there.

Lower timeframes are the best because the market is more volatile and it is much suitable for beginner traders but due to its lower time frame traders pick up the habit and over trade which ends up blowing their accounts.

Doesn't matter what timeframe you are on, price action is price action.

Liamcook96 posted:
Doesn't matter what timeframe you are on, price action is price action.

Maybe but the price action formations on the higher time frames are more reliable. So I prefer to stick to those

bridgekarate posted:

Liamcook96 posted:
Doesn't matter what timeframe you are on, price action is price action.

Maybe but the price action formations on the higher time frames are more reliable. So I prefer to stick to those

Price action formations what are they?

Here you need to understand well what to expect from the market in order to get a positive result.

There are generally more opportunities in lower time frames because small fluctuations keep happening in the market continuously. However, it requires undivided attention and quick decision making to seize all those opportunities which is difficult for new traders.

I always think that trsding lower timeframes can bring much more profits, however there are some traders, or investrs who can earn solid sums of money due to trading on W1 timeframes and higher. Everything here depends on your skills and the general wishes. If you were dreaming about becoming a good investor, then perhaps it won't be difficult for you to trade higher timeframes and earn good sums of money. Anyway, I got used to suppose that investing requires solid sums of money initially in order to get a good percent from your investments. That's why I prefer trading lower timeframes and just accumulate money in order to invest it in future.

What is the advantage of trading in lower timeframes and does it increase the risk rate?

Yeah Parker trading in lower time frame has risk associated with it. The reason is - need robust technical analysis and higher leverage to see the returns in less time.

Lower time frame just seems to be noise to me. I prefer the daily nice and steady. I only need to trade once a week at most and I make hundreds of pips more than all these scalpers losing money all day

Lower time frames are mostly traded by expertise since the market is more volatile than usual which is why new traders should avoid using lower frames because the prices move forward and backward which is unpredictable.

Liamcook96 posted:
Doesn't matter what timeframe you are on, price action is price action.

But time frame is very essential on what you are planning to trade. Some prefer 4H timeframes, some prefer 1D timeframes. Strategy comes after that.

Timeframe depends on which type of a trader you are and what your strategy is. If you have a clear understanding about this, choosing a suitable timeframe will not be tough.

Timeframe for short term trading is most detail using low timeframe like as M15, but personally I don't like to use M1 timeframe, because too many noise in the price movement and could leading to face often false signal in smallest timeframe, but maybe it will depending on the habit each traders

In forex, the trading time frame is very important. Lower time frame forex strategies are usually shorter-term in nature. Having a good understanding of the currency markets and the price action that occurs on a lower time frame is helpful when trading on smaller charts.