Stocks Intraday - Multiple Timeframe Alignment - 5 and 15 min

Discussion in 'Technical Analysis' started by stevenmac22, Oct 9, 2021.

  1. Hi Everyone,

    I have been trying to get used to using a multiple timeframe approach with a 5 minute and 15 minute. I been looking for that "particular" alignment, but it seems that I need some rules when evaluating whether I have confirmation or not on an entry and exit. Often, it seems like I get duped or I get out too early because I may see a break down on the lower timeframe, but the higher timeframe remains intact.

    Does anyone else use primarily a 5 and 15 minute timeframe? I have a few moving averages on the chart with a 8 EMA, 21 EMA, and 55 EMA, and a stochastic to use as a cycle timer on both charts.

    How do you evaluate for alignment to have confidence around your trade position that you are the right moment to take it?

    Are there a few side by side 15 and 5 min charts I could work through with someone to see how you analyze to develop confidence on the trade to either enter and exit?

    Thank you for the help and assistance to learn more about this.

    Steven
     
    Onra likes this.
  2. qlai

    qlai

    If 5min is your “trading” timeframe then that is what you base your decisions on(and risk). The higher timeframes are used as filters to either give you green light or red light, at least for me.
     
  3. KCalhoun

    KCalhoun

    I use 1 5 15 .... mainly check 15 to confirm reversals eg hammers shooting stars etc... if confirming pattern is there I trade larger size
     
    murray t turtle likes this.
  4. al brooks uses 5 min, and he does not like the idea of multiple time frame. Anyone has experience that another time frame increases accuracy? On the other hand, what info on 15 min chart can not be gained by looking at 5 min chart?
     
    murray t turtle likes this.
  5. Here is my 2 cents on this: If you really want to be good at this trading thing, even as a short-term trader, I don't think you can ignore the daily and hourly. I just think there is way too much noise at the shorter time frames so you can improve your accuracy tremendously if you have a sense of where the market is in much larger time frames.
     
    Onra and comagnum like this.
  6. qlai

    qlai

    Saves screen space and smoothies out the noise. It’s kind of like looking at Heikin Ashi charts.
     
  7. traider

    traider

    This is backtestable. Go backtest it and you will see it is mostly noise.
     
  8. %%
    SURE does T2009;
    but monthly candlecharts =greater DD\drawdowns, but better dividends.
    Longer time frames=less lippage, less bid ask, less profit, unless you trade like a market maker. DON Bright Daytrading Co did not like 5 minutes= too slow, which i found funny:D:D:D:D:D,:caution::caution::caution::caution::caution::caution:.
    NOT a prediction, not bank insured+ not going to stop reading Dr Suess, some.
     
  9. Would it be helpful if I show a screenshot of the 5 and 15 minute of how I see it? Once I am back later today, I will do this as I am interested to see what I may need to change and how I can learn from what all of you know from your experience. Thanks everyone for contributing to my question and trying to help.
     
  10. Steve,

    3 problems: a summary of what everyone is saying.
    1. Lagging indicators (EMA and Stochastics). You can work with them, but have to know they are behind by more than the time period of the bar. Usually you need the completed bar and the next bar to confirm. Too easy to undo the signal.
    2. The 5 will tell you enough about the 15 you don't need it. It will not get you more "correctness". But the daily is important.
    3. You need more than these as input. Sure they will show signals, but they will show more false positives and that will result is a lot of negative (lose-stopped) trades. You can try additional filters, but by then you have a lot of stuff going on. Simple is better.
    One last thing, there was a guy who did 5-15-30 and MACD. He used to get excited about when the all aligned and call it a "perfect storm". But the truth was, it was obvious before the alignment and the alignment was too late to be tradable, so you got into it late when it was pausing, or bouncing, or even reversing. So the trades were 30% wins (continuation after the pause), 30% stopped or sub optimal entry (bounce), or 40% a straight up loss (reverse). That is not the "advantage one can "trade.
     
    Last edited: Oct 10, 2021
    #10     Oct 10, 2021