Hi, What chart timeframes, or number of ticks for daytrading the ES are you mostly using? Thx Saico Germany
go down from daily to 60,15,3,1. 120 gives a nice picture too. 10 minutes look clearer than 15 many times. if you want to refine your entry further, try lowering to 30sec chart.
To determine whether or not criteria for entry have been met: 5m. To enter, 1m. For context, 15m, 60m, daily.
I believe you have to define the risk you are comfortable with in order to decide which timeframe to trade. Im only willing to risk .75 pts. on most trades so I trade off the 1 minute chart. If your comfortable with 3 pts risk you can trade the 5 min chart and go for larger moves. The same setups occur on all time frames but the r/r is proportional. One is no better than the other, imo, its just a matter of comfort.
Use whatever works, but given how volatility has contracted I've moved away from using the 5 minute or lower to the higher time frames (10/15/30/60) for taking trading signals. Doug
Always, I mean, always take signal from one single timeframe only. The signals or setup from other timeframes are not ignored, but just part of your confirmation and planning. Once a setup or signal has happened on your reference timeframe, then you can drop down a level to control the entry. Once a position is put on, you can always drop down a level of timeframe to manage the position. e.g. If your reference timeframe is 5 minute, then you can manage your entry and exit with 1-min or 30-sec timeframe. You can always consult higher timeframes like 15-min, 30-min, etc. for planning ahead. One thing to remember is to choose a reference timeframe that you can afford to take the risk. For example, 5-min charts can easily swing 3 to 5 pts without affecting the direction of many indicators, so you must be able to stomach 3 to 5 pts against you if your setup is still intact. If you are not comfortable with that type of risk, you need to lower your timeframe to say 3 min, 2 min, or even 1 min to control the risk.
On the other hand, it's important to provide yourself with a timeframe that gives you time to think. Otherwise, you're particularly vulnerable to whipsaw.