It's difficult to give an exact answer to this. However, regarding scalping, I have found that when I scalp from a 1m chart the larger charts, 5m etc. almost do not matter unless they are at significant supp/res and do not allow room for even a scalp to move. I will take a trade on the 1m sometimes even if the 5m and 15m look like they're ready to go in the opposite direction, again, if there's room to move for a scalp. If I want a larger move, I like at least the 5m in my favor. I'll post two charts from Friday for examples.
There are some fantastic threads in here... Lawrence Chan : I really liked what you said just then... I feel exactly the same way... I tend to look at price in levels as well, which makes it much easier to look at the sup/res areas, no matter how many timeframes you're looking at. The sup/res lines remain at the same place, and depending on which timeframes I draw them on, I will make them thicker by drawing them double/triple and so on(in my software) when the timeframe increases. This way, you can also look at a more realistic 'tolerance' of those levels by giving them more space. What I'd really like to know from the experts around here is whether you have some sort of method of measuring "relative strength of Sup/Res Lvls in different TF" to each other? This is a concept that came into my head and won't leave - Could we look at the strength of resistance/support levels in their timeframe relative to the strength in other timeframes - Like taking, for example, as a day trader the 100pt daily resistance, and relate to it looking at 60M res's as 30pt or so, 10M-res. as 5pt or the like worth of level strength? This could be a way of easily calculating reward:risk ratios when coded into a trading system. Anybody done ventures into this direction? It's probably already old and been done, but I appreciate any help / constructive comments on the issue. Cheers, ~The Scientist --------------------------------------------- For interested or beginning traders: Major resistances/supports are definitely in all timeframes the daily (today's and the last x days') highs/lows. I never argue with them. Even if it looks like a breakout is happening - far too many times it is false. If I'm holding, I'll sell, if I've shorted, I'll cover approaching them... If you bother holding on, you could get slapped by a serious reversal that often takes only a few seconds to run away from you - at hypersound speed. So make sure you mark those levels well and watch them carefully. The same applies for tops/bottoms touching a daily regression trend line channel. You don't argue with them, either. You can even extend this way of level/trend defense by stop-reversing your position - Say, (given a generally bullish overall market signs which for me, for example, is a bullish W&D&60M tendency and, if possible, TRIN <0.5/0.6 and tick above 50+) you're short 5,000 stock of XYZ - you hit the major daily support level/trendline and put in an order to buy 6,000 of the same stock, covering the 5k shorts and going long 1k, being 20% of the old pyramid, which then, once a flush through support (which is nasty on NASDAQ 4ex.) seems unlikely enough, you pyramid to another 20% long and keep adding 20% each time you reach another 15% towards what you think is the cycle-span (such as a 60M regression trend line channel and/or Daily ATR) for a nice, cyclical security that looks good for 10M-trading) That way you would have a 100% position by the time you reached 75% of the trading span (your ATR for ex.) - Next step is cycling out again - at another 15% (if it doesn't happen earlier), it's 90% and you could liquidate 30%, another 30% of equity at 95% of channel/ATR, another 20% right at resistance and hold 20% to see whether it might be a breakout above - if it is, the 20% can make you lots of money on a runaway - If not, you can just reverse your position again out once you're back to 80% or so, you wouldn't lose much since most profits are locked in, I find the potential rewards here far outweighing the risk. Good Luck experimenting with that... Take nothing for granted!