when people use two time frames, they use them together? and if yes then how? like the longer for enrty and shorter for exit?
i am looking into trading in certain conditions based on candlesticks and support and resistance. the trades generally last for a couple of minutes. currently i never traded this live yet.
You can use the longer time frame for the trading signal itself and the shorter one for confirmation. Or you can use the short time frame for the trading signal and the longer time to confirm that you are not betting against the trend. As an exit tool the longer time frame is generally more reliable, meaning it will keep you with the trend much longer.
Hard to live spot S/R on a H1 chart, because it's unlikely it'll trade sideways for 4hours before changing direction, you've still got to spot it and see if order near it's low's fills with a SL at new lows incase it doesn't reverse. Where as M1 you can go, no new lows for 6mins, get in near low and good chance you'll make 4x's what your risking. You likely thinking Historic S/R going back days / weeks, that stuff stopped working 15years+ ago, momentum does not care that the price stalled here 6weeks ago.
Oh no, on the higher time frames, the market can still "remember" a 10-year old support/resistance level (for instance), trust me on this one!
That's just your view and beliefs on what works best for you. That's what's great about trading. Different strokes for different folks.
Pull up any monthly chart and see how the market still reacts to these so-called "old" support/resistance levels. Keep in mind that long term traders all over the world are watching these important "old" levels and reacting to them, especially on the major indexes and the currencies.
Why would 'long term traders' care about these "levels"? If you see an advantage to buying or selling now, would you say "no, I'm going to wait until it hits this level" and lose the opportunity? If you need to get out of 500k shares, will that "perfect" price hold still for you while you sell them all? With very few exceptions, I see T/A as nothing more than self-comforting apophenia. I've actually generated random GBM plots, printed them out as candle charts, and shown them to T/A "gurus" who then insisted vehemently that the S/R levels showed this or that kind of buyer/seller action, and where people were hunting stops, etc. - and got seriously pissed when I told them the facts. Seeing Jesus in a piece of toast isn't about the toast.
Because they want to know if they are holding or if a breakout is in progress. These levels are not imaginary lines, they represent important zones where traders decided that the price was too high or too low and voted with their money. When the price revisits these S/R levels, even decades later, traders take note and wait for the price reaction to trade accordingly.
If there is such a thing, then it would depend on where the price is now. Where it was a month (or whatever) ago has zero relation to current events. Yes - back at a time when current events, state of the world, the number of traders and their positions, and literally everything was different from today. There aren't too many people in the world who are going to say "I may be 60 years old, but hey - the barometric pressure is the same as on my 18th birthday, so I'm going to get stoned and race go-karts in the dark just like I did then!" The narrative of "this is what we did then, so we need to repeat it now despite all the changes" makes literally zero sense. That statement would be much better for some actual proof. For every coincidence of these "levels" you can find on a chart, I'll find a dozen where it didn't happen. I realize that any True Believer will easily find an excuse for every case where his pet theory is wrong, but it doesn't change the fact that he is wrong.