Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

blueberrycake

Selecting a Timeframe for Your Charts

Recommended Posts

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

 

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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

Horses for courses. If for example you want to see 'price rejection' at a level I still like time base charts. Holding ticks volume or range constant tends to obscure this information. Actually that is not completely true if you can display a time histogram on your charts. e.g A constant volume chart with a time histogram at the bottom shows these events well.

Share this post


Link to post
Share on other sites

I still feel you can just as easily see points of resistance/support on tick charts as time charts - to me possible even better since you may see more attacks of those levels inside of a time interval bar that you'd normally be waiting on to close. However, it is definitely true when it comes to renko - you will not see the extremes of moves that occur inside the value you are using for the renko bar -- it does not plot all price point moves.

 

MMS

Share this post


Link to post
Share on other sites

I agree MMS that support/resistance are just as easy to see on tick charts. On a daytrading basis I have yet to see a time based chart outperform a tick or range chart in the long run. I have better consistency with these charts than I ever did on time based.

Share this post


Link to post
Share on other sites

Its all about consistencies. All time frames vary from one strategy to another. Meaning, something may work well on a 5 min chart but simply won't apply to a 30min chart. It all begins with basic fundamentals. Find a strategy apply it, then improve. Just as market evolve over time, you as a trade must evolve with it.

 

*Good luck on your next trade*

Share this post


Link to post
Share on other sites

Sure S/R are (arguably more so). They are great to see short term 'walls' of resistance. Price rejection is not 'S/R' though.

 

It is a data sampling thing....depending on how you sample data certain things are obscured some emphasised. One of the characteristics of price rejection is that it often happens quickly and on high volume/lots of ticks (a classic Wyckoffian selling climax if you like). It's not a question of 'out performing' it's a question of what market phenomena you want to observe and what you want to de-emphasise through the sampling process. Incidentally if your performance is better with constant tick charts more power to your elbow :) but it is a non sequitor to suggest that it is the charts performance.

 

A more interesting comparison perhaps is constant volume charts vs tick charts, they are much more analogous. The constant tick chart tends to emphasise what the small lot traders are up to (if that is your interest) as a 1 lot tick has the same emphasis as a 500 lot tick. have you guys looked at constant volume charts? Why do you prefer constant tick over them?

Share this post


Link to post
Share on other sites

BlowFish,

 

Good question. What's interesting is a few years ago I was convinced that the volume/share bars were smoother -- just slightly but I felt it was giving me a small, measurable edge. As to why I gravitated back to tick - good question (!) -- I think some of it is because it's easier to move between markets and pick a good time interval for tick charts. For volume, it always seems a little trickier since there is major variance - for example a 377 tick on several markets is ideal for what I do -- but when I try to match with volumes the numbers vary greatly. So maybe laziness on my part to do more work on it.

 

Do think they can be a great way to add some smoothness to tick charts.

 

MMS

 

 

Sure S/R are (arguably more so). They are great to see short term 'walls' of resistance. Price rejection is not 'S/R' though.

 

It is a data sampling thing....depending on how you sample data certain things are obscured some emphasised. One of the characteristics of price rejection is that it often happens quickly and on high volume/lots of ticks (a classic Wyckoffian selling climax if you like). It's not a question of 'out performing' it's a question of what market phenomena you want to observe and what you want to de-emphasise through the sampling process. Incidentally if your performance is better with constant tick charts more power to your elbow :) but it is a non sequitor to suggest that it is the charts performance.

 

A more interesting comparison perhaps is constant volume charts vs tick charts, they are much more analogous. The constant tick chart tends to emphasise what the small lot traders are up to (if that is your interest) as a 1 lot tick has the same emphasis as a 500 lot tick. have you guys looked at constant volume charts? Why do you prefer constant tick over them?

Share this post


Link to post
Share on other sites

BlowFish,

 

I have not done a whole lot with volume charts. Most of my active trading is done with range charts at the moment. I really like how many nice clean quick moves these charts have because they react so fast.

 

I have recently started to look at volume charts again. You're right it would be an interesting comparison to look at volume vs tick charts. I agree with MMS that it does take some work to get the right setting correct going from tick to volume charts. At the moment I'm confident in my trade plan using range charts so it's difficult to motivate myself to mess with something that"s not broke.

Share this post


Link to post
Share on other sites

S/R is visible on any timeframe (and most chart types) you consider has the liquidty and brokerage to allow you to trade it. The lower the timeframe the more noise you have to deal with though. If your candles consist of 3-5 tics (H-L), you probably aren't getting a good view of what's going on.

 

Just remember to point yourself in the right direction.

Share this post


Link to post
Share on other sites

I have always thought CV 'smoother'. Though one problem is large block trades can distort them. The DAX sometimes has these particularly around expiration. So lets say you like a 500 contract bar (quite plausible for DAX) then out of the blue you get a 10,000 block tick as an off exchange trade is reported. They scale up well too.

 

Tick charts quite often have sideways 'blocks' (or so it seems to me) if you want to easily identify these pauses they seem pretty good for that. I quite like them on the fastest time frames (or should I say at the highest rate of sampling).

 

I agree robertm S/R is pretty easy to see on just about any chart type or periodicity. The more obvious it is (the more people playing it) the better. Of course the big question is whether it s holding when price revisits it at the hard right edge of the chart.

 

Bar types I would like to do more work on involve market delta e.g. constant delta, delta' shift'.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • there is no avoiding loses to be honest, its just how the market is. you win some and hopefully more, but u do lose some. 
    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.