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.

shooly76

10 Min Chart Vs 3 Min Chart??

Recommended Posts

will someone please explain the difference... and pros and cons of these 2 time frames?

 

less noise w a 10 min chart= higher probability trades??

 

Ive been trading 6E, 6A, CL, GC, and TF on a 3 min chart, and havent been doing well at all. I was trading a 5 min chart, but decided to try a 3, now Im thinking about a 10

 

any input much appreciated

Share this post


Link to post
Share on other sites
will someone please explain the difference... and pros and cons of these 2 time frames?

 

less noise w a 10 min chart= higher probability trades??

 

Ive been trading 6E, 6A, CL, GC, and TF on a 3 min chart, and havent been doing well at all. I was trading a 5 min chart, but decided to try a 3, now Im thinking about a 10

 

any input much appreciated

 

I use 5 min on ES and 2 min on YM and 1 min on HSI

Share this post


Link to post
Share on other sites

 

less noise w a 10 min chart= higher probability trades??

 

 

One man's noise is another man's information.

 

The problem is with your strategy. Selecting the right TF is only part of the strategy. Re-work your strategy from scratch, and it should become clear which TF you need to focus.

Share this post


Link to post
Share on other sites

Chart increment settings are very important as it's amazing how the exact same market can look different through different views. And there's plenty to choose from:

 

Minute charts

Sub-minute charts

Volume based charts

Tick based charts

Momentum based charts

 

And even more than that.

 

You have to find what works for you. If you want to smooth out the noise, look at charts not based on time and see how they look for you. For example, in a fast moving market, tick or volume charts will be very active - and not so active when it's slower. I find it easier to make money when things are really moving, so non-time based charts help there.

Share this post


Link to post
Share on other sites
One man's noise is another man's information.

 

;) You got that right. :rofl: It's all information. It's about how the information is processed and interpreted. And whether the information has any correlation to price or not.

Share this post


Link to post
Share on other sites
will someone please explain the difference... and pros and cons of these 2 time frames?

 

less noise w a 10 min chart= higher probability trades??

 

Ive been trading 6E, 6A, CL, GC, and TF on a 3 min chart, and havent been doing well at all. I was trading a 5 min chart, but decided to try a 3, now Im thinking about a 10

 

any input much appreciated

 

Noise implies that something is not very useful and it can't be understood.

 

How fast are you able to make a decision and act on it? The faster you are able to make a decision and act, the shorter the time frame you can trade. It's all relative. What you might be experiencing on the shorter time frame, is loosing track of what is really going on with the trend by focusing to narrowly on what the price bar is doing in the short term. You can get "hypnotized" by the price moves and stop paying attention to what you really need to focus on.

 

I'd like to make a distinction between "noise" and speed. To me, noise is something that is distracting, you can't make any sense out of it, and it's confusing. So back to my point about how fast you can make a decision. If the price is moving very fast, and the speed somehow causes you take your focus away from what the trend is really doing, then it's "noise". What is "noise" to you, might be opportunity for someone else. Price does exactly the same thing whether you are looking at a 10 minute chart or a 1 minute chart. The issue is about how you perceive, process and act on the information. That's a personal evaluation you must make about yourself. To me, that's part of the issue.

 

To DoOrDie's point about your strategy; if your strategy is not good, then it's all noise.

Share this post


Link to post
Share on other sites

i recommend 5m rather than 3m. because 5 is divisor of 10.

if you research intraday volume trend you'll realized that automated orders tends to be executed at X0min 00 secs

i don't know who it is. probably institutional trader's machines and individual system traders as well.

however it could be a bit different in your market. so research first.

Share this post


Link to post
Share on other sites

thanks for all the helpful replies! I had 2 nice trades (live) for a total of 35 ticks today w TF

 

I am going to stick w what worked for me in the past.. a 5min, and a 30min (for overall movement), trend... (or lack thereof in some cases).

 

I reworked trend-following system a bit.. and now I wait for retracement back toward EMA and SMA

5aa7109fe13a5_TF09-11(5Min)8_31_2011.jpg.552f6e196e46127a85152620e49df07a.jpg

Share this post


Link to post
Share on other sites

oh I almost forgot, the yellow circle on the chart shows where price broke both EMA and SMA, I gathered this shows uncertain or hesitant direction in trend movement.. so I chose NOT to enter again.

Share this post


Link to post
Share on other sites

Another factor is risk tolerance. A 10m chart may provide a view in which a stop will need to be larger than if you were to use a 3m chart.

 

Also, the more volatile the market, the more you may need a faster chart. I trade CL, and find a 1m chart provides a nice entry view, if one is patient enough and does not get caught up in the excitement. My "base" chart is a 5m. I also have up a 15m for intraday structure, a 60m for an intraweek view, and daily for longer term views. I use a 25 tick for a more logical structure when things are slow, and for seeing within the 1m bars when things are very fast. Finally, I use volume charts for weekly and monthly profiles, where I do not need to see volume information.

 

It's all about what works for you.

Share this post


Link to post
Share on other sites

This has been a dilemma for me as well. I have been experimenting on the cable with a demo FX account.

 

If you are using any trend following system that uses moving averages, then the longer your time-frame is, the more accuracy you will have. I am currently manually back-testing some M/A based systems on Meta-trader, and I've found that the 5 minute chart filters out many bad trades that you'll get on the 3 minute chart. At the same time, you won't get the lag that you get on a 10 minute chart.

 

As far as stop losses are concerned, look up Linda Raschke's video titled "How to Use Stops, Why Trade with Stops, How to Determine Stops". She says that the wider your stop, the better your accuracy. She recommends an initial stop of 3 ATR. She also tested time-based stops on the daily chart, and she found that you should exit a trade if it doesn't work out within 7 bars. I reckon that would work well on a lower time-frame as well.

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

    • Renko Full Throttle PRO Indicator ---------------------------------------------------------------------------------------------------------------------------------- EURUSD 4H Chart: Success rate is 85% in the last 6 years    _______________________________________________________________________________________________
    • Date : 16th December 2019. Events to Look Out For Next Week 16th December 2019.Following a busy week ending with a Conservative victory in the UK election and rising hopes of a potential trade deal between UK and China, attention turns to the BoJ, PBoC and BoE monetary policy meetings next week. However, the developments on the US-China trade front will remain front and centre.Monday – 16 December 2019 Manufacturing PMI (EUR, GMT 08-30-09:00) – The prel. November manufacturing PMI was revised up to 46.9 from 46.6, despite the signs that the weakness in manufacturing is starting to spread. The European PMI for December meanwhile is expected to released at 47.4. Manufacturing PMI (GBP, GMT 09:30) – The UK PMI is expected to register an upwards reading to 50.7 after the upwards revision last week at 48.9. Tuesday – 17 December 2019 RBA Meeting’s Minutes (AUD, GMT 00:30) – The RBA minutes provides a detailed assessment of the bank’s most recent policy-setting meeting, containing in-depth insights into the economic conditions that influenced the rate decision. They are usually a cause for FX turbulence. Employment and Earnings (GBP, 09:30) – Average earnings are expected to have increased by 3.8% in October, above the 3.6% the previous month. The ILO unemployment rate (3M) for October could rise at 3.9% from 3.8%. Wednesday – 18 December 2019 German IFO (EUR, GMT 09:00) – The German Business Sentiment Index released by the CESifo Group is closely watched as an early indicator of current conditions and business expectations in Germany. December’s numbers are expected unchanged. Consumer Price Index (GBP, GMT 09:30) – The UK inflation is seen unchanged to the downside in December, at 1.5% y/y, the lowest rate seen since November 2016 and after 1.7% in September. The core should be steady as well at 1.7%. Consumer Price Index (EUR, GMT 10:00) – Prices are expected to have eased slightly in December, with overall inflation expected to remain at 1% y/y, while core inflation at 1.3% y/y. Consumer Price Index (CAD, GMT 13:30) – The overall Canadian CPI and core should hold close to target, while the November Core outcome is expected to slip to -0.2% following the 0.4% jump in October. Thursday – 19 December 2019 Interest Rate Decision and Conference (JPY, GMT 03:00) – In the last meeting, BoJ kept its short-term interest rate target at -0.1% and its pledge to guide 10-year JGB yields around 0% while maintaining its asset buying program. The central bank signaled its commitment to keep interest rates at current levels “for an extended period of time, at least through around spring 2020”. BoJ Governor said in his statement that cutting rates further are a possible policy option, adding that he doesn’t think that Japan is near the reversal rate. He also said that he doesn’t think the BoJ needs to change the forward guidance now. Hence this is likely to remain the scenario in this week’s Monetary Policy Statement. Interest Rate Decision (GBP, GMT 12:00) – BoE should remain on hold until Brexit has been resolved. Thus, consensus forecasts suggest no change in the policy rate in this meeting, however an uTwo of the nine-member MPC dissented in favour of cutting the repo rate by 25 bps Friday – 20 December 2019 Gross Domestic Product (USD, GMT 13:30) – A Q3 GDP growth is expected up to 2.2% from 2.1%, with a -$1 bln trimming for factory inventories alongside a $4 bln hike for construction. The Q4 GDP growth estimate sits at 2.4%, with support from recent reports indicating a -4% Q4 drop in imports that adds to GDP, likely firmness in government purchases, a rebounding residential investment sector, and an expected bounce in equipment spending. 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 HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex 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 FX and CFDs 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.
    • Date : 12th December 2019. Lagarde prepares ECB debut – 12th December 2019.   Policy unchanged Projections unlikely to change much Clues about review sought Style in focus Presiding over her first presser of the European Central Bank today, Lagarde is expected to confirm once again the current policy setting, giving time to ECB to focus on the planned review of its overall policy framework.Final Eurozone GDP and PMI readings broadly supported this neutral picture, while the confidence that a deep recession can be avoided is strengthening (Figure 1) despite the fact that German manufacturing and production numbers still look weak. The exports and the overall trade are actually holding up much better than expected, which together with still strong labour markets is underpinning hopes the net exports and consumption will continue to support growth not just in Germany.Figure 1 : December German ZEW investor confidence outcome, end the year firmly in positive territory at the highest level since February 2018.As there is nothing in the data really to challenge the ECB’s overall policy stance, the focus firstly turns into the tone and presentation style that President Lagarde will have. The “risk” is that the presser will be equally uneventful as her testimony before the European Parliament. Lagarde’s team building exercise seems to have worked and at least in public there has been a pretty consistent message since she took over, which is very likely to be confirmed today. Additionally it will be interesting to see whether she will back fully Draghi’s package.Citi Bank: All key interest rates will likely be left unchanged, and the forward guidance reaffirmed. The main interest at this meeting will be the new Eurosystem staff projections, extended to 2022, to gauge whether the September package will be sufficient to bring inflation back into line with the ECB’s target over the forecast horizon. If not, investors’ attention will quickly turn to the ECB’s toolbox and what instruments the Governing Council would be willing to use and when, in order to defend its credibility in the absence of large fiscal support. The upcoming strategic review of monetary policy will also likely be the focus of many questions.Hence as reported by Citi, other than Lagarde’s style, ECB projections could also monopolize the attention. Even though, the ECB remains ready to act again and tweak all its measures if necessary, it has already done a lot and now needs to keep an eye on the side effects of the very expansionary monetary policy, while politicians need to do their bit to support the economy.The central bank won’t be reducing the degree of stimulus any time soon with many analysts supporting that this will continue until mid-2020 unless there is a major change in circumstance.Central bankers will be conducting a comprehensive review of the policy framework, however, with a special focus on the inflation target. A more symmetric definition, which stresses that the ECB can see through lengthy inflation overshoots as well as periods of too low headline rates is likely to come in the first quarter of next year. The inclusion of owner-occupied housing costs into the HICP number also remains a challenge especially as house prices are rising rapidly in some centres, also thanks to the low interest rate environment.Bund yields have nudged higher over the past week, but the German 10-year so far failed to move lastingly above -0.3%. Uncertainty on trade and Brexit are keeping a lid on yields, although there is the risk that if things go the way markets want and a phase one trade deal is confirmed and in the UK PM Johnson gets his majority, there could be a sharp rise in yields, if markets price out further easing and start to look ahead to central banks removing some of the stimulus.However this is far away for now, while central bankers are not looking eager to add further easing.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 HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex 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 FX and CFDs 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.
    • USDJPY Remains Biased To The Downside   USDJPY faces further price weakness despite its price hesitation on Tuesday. On the upside, resistance comes in at 109.00 level. Above this level will turn attention to the 109.50 level. Further out, we expect a possible move towards the 110.00 level on a break of that area, A cut through here will open the door for more gain towards the 110.50. On the downside, support lies at the 108.00 level where a break will target the 107.50 level. Below that level will turn focus to the 107.00 level and then lower towards the 106.50 level. On the whole, USDJPY faces further downside threats.        
×
×
  • Create New...

Important Information

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