[blueberrycake]

Having recently transitioned from EOD trading where I used daily charts to intraday trading, I've been giving a lot of thought to the right timeframe (1m, 5m, 15m, CV, etc.) for my charts. After much experimentation, I'm coming to the conclusion that it's best to use a chart resolution where your expected trade duration for the type of move that you're trying to capture will typically be in the range of 2-20 bars. If you go below that (e.g. 1m chart while trading multi-hour swings), you'll find legitimate reversal patterns forming on the chart, which would rightfully put you out of a trade much sooner than with higher timeframe charts. That's not to say that you shouldn't fine-tune your entries/exits with a lower timeframe chart or confirm key support/resistance and trend with an even higher timeframe chart, but the key entry/exit decisions seem easiest on a chart where your trades have an average duration of 5-15 bars.

Is this observation consistent with the experience of other intraday traders?

-bbc

[HowardCohodas]

I'm a fan of the triple view. I prefer the approach where whatever time frame you choose to trade, you should use your same analytics by scaling the time frame and scaling down the time frame by the same factor. If all three agree, enter the trade.

[Kiwi]

It depends what you're trying to achieve bbc.

You don't want to go down so far that you get shaken out. But it might be that you get a superior pattern entry on a lower timeframe. On a longer timeframe you might treat a break of bars as a reason to exit. On the lower you might require a break of a more complex structure.

So it does depend what you design as your entry and management methods. It also depends whether you can maintain discipline at any particular level.

[SIUYA]

Pretty much agree with everything said above.
Possibly only adding that given your transition from EOD trading often its important to form the actual decision making process for direction on the higher time frame and just look for the razor sharp/exact entries on the lower time frames. ...... AND DONT MIX them..... this is where you will start to second guess yourself. Once you go down this path you will then find other errors and issues creeping in....all stemming from this one simple thing.

[wrbtrader]

Keep it simple via backtesting your method on different time frames and then choose the best interval based upon the results you're comfortable it.

Also, your results to determine a suitable timeframe will differ in comparison to someone else if you're trading something different, trading a different time of day, if you're not using an auto-trading system, your ability to manage a particular timeframe on your monitor et cetera.

I myself use multiple time frames which is why I use more than one monitor to manage multiple timeframe. Simply, if I get a trade signal on the 1min chart...I take it. Just the same, 15mins later and I get another trade signal on the 5min chart...I take it. I have on my monitors the 1min, 2min, 3min, 5min, 15min and 60min charts...trying to find trade signals on any of those chart intervals. Thus, I'm not married to one particular timeframe.

My point is if you want "more" trade opportunities...you're going to need to follow more than just one timeframe and learn to manage them on your monitor(s).

Mark

Originally Posted by blueberrycake »

Having recently transitioned from EOD trading where I used daily charts to intraday trading, I've been giving a lot of thought to the right timeframe (1m, 5m, 15m, CV, etc.) for my charts. After much experimentation, I'm coming to the conclusion that it's best to use a chart resolution where your expected trade duration for the type of move that you're trying to capture will typically be in the range of 2-20 bars. If you go below that (e.g. 1m chart while trading multi-hour swings), you'll find legitimate reversal patterns forming on the chart, which would rightfully put you out of a trade much sooner than with higher timeframe charts. That's not to say that you shouldn't fine-tune your entries/exits with a lower timeframe chart or confirm key support/resistance and trend with an even higher timeframe chart, but the key entry/exit decisions seem easiest on a chart where your trades have an average duration of 5-15 bars.

Is this observation consistent with the experience of other intraday traders?

-bbc

[blueberrycake]

Originally Posted by wrbtrader »

I myself use multiple time frames which is why I use more than one monitor to manage multiple timeframe. Simply, if I get a trade signal on the 1min chart...I take it. Just the same, 15mins later and I get another trade signal on the 5min chart...I take it. I have on my monitors the 1min, 2min, 3min, 5min, 15min and 60min charts...trying to find trade signals on any of those chart intervals. Thus, I'm not married to one particular timeframe.

I've been noticing something very similar in my trading of the currency futures (6E, 6J, 6B and 6A). Basically you often have very clear market structure in terms of S/R and trend on one timeframe one day, and then on a different timeframe another day. Initially I've been passing on any signals that weren't in my primary timeframe that I had done my testing with (15m), but I'm now thinking that I should retest my method (retracement to minor S/R w/ trend) on multiple timeframes, and potentially take signals in whichever timeframe has the clearest signal, then simply adjust the number of contracts traded to keep risk constant. Sounds like you have already taken this approach as well.

-bbc

[cuttshot]

I'm going to take a very different approach than the answers listed above. Try looking at range or tick charts. I have traded time based charts as well as range and tick and find that range and tick can really increase performance. The main problem I have with time based charts is that when markets start moving you can have a lot of action within that set amount of time. For example, if you are trading a 5 minute chart and you are waiting for the close of a candle to get in you might miss a good majority of the move. On the other hand, if you were looking at a 233 tick chart for example you might have 10 candles during that same 5 minutes (because candles are formed based on the number of trades or a certain range of price action in the case of range bars as opposed to a set amount of time). So you are able to get in sooner and capture more of the move.

You will also find that tick and range charts are a lot cleaner looking. This goes back to what I talked about above. When the market starts to move you are going to see a lot of nice smooth moves. When I trade using tick or range I don't find it necessary to look at multiple time frames for confirmation either. Looking at multiple time frames for confirmation can be very difficult at times. Atleast for me, when I do that I can almost always find a reason for me not to take a trade. I don't want to over complicate things. If I can look at one chart and base my decision off that one chart then I find I'm more focused and accurate with my trading.

Just something else you might want to take a look at.

[MadMarketScientist]

I'm onboard what cuttshot states.

I have a rule. If I'm daytrading it has to be tick, range or renko bars.

If I'm swing trading, time interval bars are perfectly fine.

I've tried to vary that over the years and my results are always better if I don't.

MMS