For some reason, I can no longer find the one-minute chart I was looking at when I made the above entry, so I used the information I recorded there to configure a new one-minute chart with the parameters set as specified. (It's a good thing I wrote them down.) I then plotted corresponding indicators on a five-minute chart and compared this with the five-minute chart related to the following one-hour chart from Post #8. This revealed that the 30-minute price flow is kind of unstable. If I refer to the two "tunnels" on the five-minute chart as "snake" and "worm," then the 45-minute baseline sort of mirrors the worm. However, the ten-minute price range channel at 0.09% deviation was unrelated to anything. So, as far as using it to pinpoint launch pads and landing sites, if used in this manner, it would be recommending a number of trades in between the ones originally highlighted by the five-minute chart. But, is it really advisable to be trading this frequently, or are these trades going to be marked by a much lower probability of generating successful outcomes? Executing trades in real time is not as easy as identifying the opportunities after the fact, so I'm not going to know the answer to this question until I actually try to apply these ideas once the market opens next week. (By the way, in case you lose track of the chart in the above image as well, the dark slate blue baseline you mentioned is the two-and-a-half hour simple moving average.)
By now, you should have narrowed it down to just a chart template or two. But you actually have hundreds of chart templates with various indicators and various colors and various lines and shapes and various this and that spanning across 40+ Journals. Your name might be in the Guinness Book of Records for the most number of Journals and Chart templates. It seems like you haven't found your holy grail. It is time you just stick to one or two Journals, and one or two chart templates.
I did the math wrong. The dark slate blue baseline is more like two-and-a-quarter hours—not two-and-a-half. But in any case, I really wasn't comfortable with slapping the 10-, 30- and 45-minute measures on my five-minute chart. The two sets of indicators were not lining up well and just didn't seem to gel. So, in trying to make sense of it all, this is where I arrived... First of all, I deleted the ten-minute price range envelope at 0.09% deviation, because it was simply too messy. Consequently, the decision on when and where to enter and exit positions will have to be made based on the remaining measures. That said... If the black 30-minute baseline and pale-green 45-minute baselines are able to climb above or crawl below the gray shadow-cloud channel that I'm calling the Core, it justifies my considering entering long or short positions, as appropriate. This is especially true if the dark gray histogram within the top lower panel (which represents the slope of the Core) is above or below the upper or lower threshold levels. However, I want to be careful not to enter positions when price has merely executed a temporary surge. I therefore added a bottom lower panel with top and bottom spike/plunge lines and upper and lower maintenance levels. If this oscillator makes contact with the top or bottom band, but then fails to fall back within the inner band, it suggests the possibility that the bullish or bearish move genuinely constitutes a sustained run, and not just a momentary spike. This is even more likely if the Worm's maroon band lines up with or breaks out to the exterior of the Snake's downward sloping pink band, or if the Worm's navy blue band lines up with or breaks out to the upside of the Snake's upward sloping light purple band. So long as the 30- and 45-minute baselines continue to slope in the same direction as the Snake and the Worm AND the five-minute candlesticks continue to paint above or below these two baselines (as appropriate) there is no reason for me to exit the corresponding long or short position.
I admire your persistence and perseverance and have no doubt you are successful. I do have a question for you: I am learning to day trade using 1 minute charts. All day traders on ET who advised me told me to use 5M or longer time frame. You are trading with 1M. Why? Best regards.
Can I ask you the same question I just asked @expiated: Do you trade with 1 minute chart or longer time frame charts? Why? Thanks.
As I continued to analyzed the one-hour chart derived from the four-hour chart, and compare and contrast its corresponding proprietary indicators with what I have on my lower time frame charts...this very basic, simple configuration/strategy emerged. The opposite bands suggest where to set take-profit targets. But again, if the slope of the 30- and 45-minute baselines AND the positional relationship of the five-minute candlesticks to these two measures recommends remaining in positions you're monitoring on an ongoing basis, then go ahead and ride out the run to the very end.
It depends. I'm going to use a one-minute chart if the instruments I'm relying on to trade US Indices are index derivatives via NADEX knock-outs because just a small move can amount to as much $50 to $100 dollars, and while I hate finding myself in the midst of a drawdown, I especially dislike it when it puts me that much in the red. And the only way for me to maximize the odds of avoiding such situations is to take advantage of the precision offered by one minute charts. (I also use them when trading the back end of NADEX two-hour Forex derivative binary options.) A lot of people say that when you trade in this environment, all you are doing is trading noise, but I don't see it that way. This may be in part because I don't see a trend as a line so much as I see them as channels—breadths of values constituting belts that choose to move with directional tendency. Consequently, it's not enough for me to simply enter a position in the direction of the trend. I find that it's just as important for me to know where within these swaths of area comprising each spectrum of values I should pull the trigger. For example, this one-minute chart I've pasted below doesn't look like noise to me at all... I would also use a one-minute chart for trading 15-minute binary options via Deriv.com, but I wouldn't be surprise if none of the traders on ET who advised you happen to even trade binary options, or perhaps some even consider every single binary option outfit on the planet to be a bucket shop. When trading such vehicles, I want an 85% to 100% daily success rate, as I did when I was guerrilla trading for 3 to 10 pip's worth of profit at a time (which I no longer do), and to attain this goal (which it seems to me many ET contributors consider to be impossible, if not utter nonsense to even talk about) I find it necessary to trade using one-minute charts. Another factor is that I believe there are specific moving averages that are superior to all others for shadowing the trend in each time frame, a contention on which possibly everyone in the world disagrees with me; and that not only is it ideal to trade with the right ones, but to also do so with an awareness of what their temporal values are, a characteristic of moving averages that, as far as I know, is attributed to them by no other sane human being anywhere (assuming I'm not out of my mind). One last precise measurement that only one-minute charts can offer me at the most minute level has to do with rates of change. According to Investopedia, ROC "can be used to spot divergences, overbought and oversold conditions, and centerline crossovers." However, I have no interest in using ROC in any of these ways at all. It seems to me that the best way that I might make use of this indicator is to measure the strength of a given trend, seeing as how I imagine that I have somehow identified which moving averages best convey the direction in which price is ultimately headed within each of the various time frames. You can see that I've plotted these threshold levels for each of the two ROC histograms included in the lower panel above. However, when I'm trying to generate returns of at least 10 to 30 pips at a time, I too tend to use five-minute charts and above. When this is my goal, one-minute charts are simply unable to capture enough of the entire landscape to be all that helpful.
Thanks. It is helpful. There are a lot of interconnected parts and I need to digest your answers carefully.
I use volume-based candlestick charts, not time-based. Take for example Crude oil futures. I use 75V (a few seconds chart) or 150V (a few seconds to a few minutes chart). Take for example ES futures. I use 300V (a few seconds chart) or 500V (a few seconds to a few minutes chart) during the European session (and occasionally during the Asian session) or when there is a major economic data release / news. I also use 1500V (a few minutes chart) or 4500V (a few minutes to tens of minutes chart) during the US session ______________________________ The market moves in various manner/temperament/behavior. There is no such thing as one-size-fits-all thing. That's why I have 4 ES volume charts (300V, 500V, 1500V, and 4500V) __________________________ All the professional writers / talkers said never use 5 minutes or shorter chart. They say to use as long a duration as possible. My goodness! _________________________
Thanks. I don't quite understand your answer about using volume based candle stick but that is OK I will do some research and will figure it out. I normally trade options and is only recently getting back to try day trading again. For options, I turned the corner when some good folks here told me to go longer time frame. For day trading I may end up doing the same and move away from 1M charts to longer time frame.