As I said in the above post when the 1 min goes up 10 points so does the monthly but when talking about turning I'm more thinking about candles changing from up to down and the trend starting to be obvious on all timeframes. Apparently it starts on the 1 min chart and shows up on the monthly last which I suppose us true to a degree but I just don't agree that the 1 minute chart "pulls" the price or in any way "leads" any other timeframes. They all move together it's just the graphical representation of that price move that is different.
The great thing about these debates is that you don't even need to make a side bet - you trade your beliefs and s/he trades his/hers, and after a certain amount of trades, you can compare P/L! Now, if you aren't trading live yet, and trying to develop a strategy, then maybe it's worth arguing about a bit. But, at the end of the day/week/month/year, the P/L is the final judge.
You are right! The 1 min doesn't the lead nothing.. All time frames are connected and move together.. You can't separate the 1 min from the monthly chart because they are both based on the same price... The best way to explain it is, if you took a magnifying glass and put it on the monthly, then you will get the 1 min .. The only reason why some people think that the 1 min leads is because the 1 min has more information (candle stick bars) than the monthly.. So the 1 min might show a lot of selling before any chart.. That being said, the 1 min also will give a lot of FALSE reversal signals.. I tell what, tell your friend since he or she is so confident that the 1 min leads...Tell him to swing trade a 1 min reversal long term play and put 100 k on it..
Everyone goes on about 'secrets' in the markets. Well, if there is one, it's the 1m chart, and maybe even sub-1m. Everything starts in the 1m world if you think about it and the moves these days are so quick and often violent (not talking about figure related) that using higher charts it's really really hard to get on board. If you've noticed many people say 'don't go lower than a 5m because the moves are noise'. Either they don't know what they're talking about, or they do, and they don't want you down in the 1m. Also, in the 1m world, decent setups come along like they're on a conveyor belt. So you can have a lacklustre morning, even a losing one, and come back big time by the end of the session. Try doing that on the 5m or higher. Of course, you can't be a cowboy in the 1m world, trading anything that moves, you have to be selective and use a higher timeframe for some sort of filter. The 1m also forces your brain to hold concentration better because you can only really analyse one market. If you trade 5m or higher, you can follow more, but it's very easy for your brain to get confused as you have to focus on say DAX then move to a completely different chart/picture on the Euro before doing so again on Cable. So to the OP, your friend is right. 1m charts are great.
@AbbotAle agreed that the 1 min is the best tf for making money with the least drama once you're competent it's just the belief that it leads anything that I don't see. It's the same price on all tfs just a different representation. Glad you agree on needing htf direction though.
It's good to here that others and I've heard of others using my simple methods to make great cash in the past aswell, the method isn't the issue it's ME, 100% ME, I suck at day trading, swing I can do, Day trading NO, but I'm getting better and better at it, did have a highly profitable year then lost the plot. Think I'm sticking to this 1, added back the 13 range which makes it a full system, we'll see the results over the next few days / weeks I guess.
You have to go with your market beliefs I think. I would just say though... Maybe you suck at day trading because of your unwillingness to embrace the higher timeframes into your analysis ;-) . (Joke) . Seriously though the way I see it if you don't use htf analysis you'll trade well when it's all moving in the same direction but awfully when it's not leading to mixed results. Why not wait for only the highest probability situations such as a 15 min pullback in a trend that's moving in the same direction as the 4 hour momentum. Then trade the hell out of it on the 1 min in that same direction?!?!
I have 2 options, trend of trade I generally trade the wrong damn 1 then lose lol The SL size i use makes such things pointless.
The smaller the time frame - the more noise. Trading only from a 1 min chart is like driving in downtown with reading glasses on. Most seasoned traders, other than scalpers, use multi longer time frame charts - like week/day/60 min. Some may go down to 30 or 15 min only for the entry, than manage the trade on the 60 min chart . The market internals are just as important as the price - like RS to other markets, $tick, $trin, new highs/lows, P-C ratio, etc . and don't forget the time of day has a major influence on hitting reversals or continuations.
This isn't accurate at all, especially the entry on 15 and 30 minute charts. You'd be left in the dust if you timed short term entries this way.