I'm using 2 minute chandlestick charts, but it seems as if there is too much noise. Off course I also check with a larger time frame to see the trend, for instance 5 min bars and the day trend on 15 min basis. What are your thoughts about this? anybody who uses triple screen analysis?
Biggest mistake both beginning and intermediate traders make is mismanaging multiple time frames. Weather it is 2, 5, 15 or 60, daily, weekly.... they make a trade based on one time frame, then start second guessing themselves or get shaken out because other time frames that the trade was not based on. 2m may be ok on some stocks but not others.... if it looks too erratic... then 5m or possibly 15m should be used instead.... IF, IF YOU MUST trade that stock. If you are a 2m trader, you should look for a stock that fits that time frame.... not make a time frame fit that stock. WHY? Because you may not have the stomach for certain time frames.... find the one that fits you... then find the stock that fits it. This balance is important. You may be a good trader with right understanding... but be stuck in a rollercoaster that you dont like, causing you to make mistakes you may otherwise not do. There is a ton of holy grails out there...... all happily laying in a vast field .... but there is only one road that leads to them.
Let me give you a clue. I am a newbie, but have good teachers. I trade indices and currencies off the 5 minute candle with a 20, 30, and sometimes 60 for trend. 5 to enter, longer to determine my directional bias. You can enter off of the longer time frame but you have to run a bigger stop IMO. Thats my nickel's worth
Dandxg, Are you trading with a currency/futures prop firm? Just curious, because you mentioned you got good teachers.
If you're day trading, I don't really see how you can get around that factor (noise). I swing trade, so what I do is look on a daily (monthly) chart to see if I'm bullish or bearish, then use the 60 minute chart to time executions for longs or shorts. The longer the time frame, the more noise is filtered out, and the more important the current trend becomes. I also want to add from what I read in the book, "The master Swing trader". Your time frame should be whatever you can reasonably manage. Example: Swing traders try and capture larger gains and usually will hold over night to get there. This style of trading is not as "Intense" and requires less time in front of your computer. So if you want to run to the mall, or whatever, you can..just set your stops, and go. On the other hand, you as a day trader dont have that luxury..unless you go flat. A stock can go up and down 20 cents a lot easier than it can 2.00. If you have a 1000 share position..you can lose 200.00 in a matter of seconds or minutes. In short, use the time frame that fits your life style the best. - Nathan
No I am not, I am trading as a retail trader at ProActive Futures. My teachers/mentors are 2 gentlemen I was lucky enough to have reached out and found me when I was struggling last year. One of which, I later purchased a course from, which unfortunately isn't working in the current trading dynamic and the other just is a great guy that wanted to help that taught me what he spend 2 years learning on his own.