Please note that my above was simply a small lesson for newbs and not meant to show ANY timeframe as being better, heck I trade the weekly, often as not, as well as the one and 5 minute, so Im the last to point out which is better.
Yes, the risk AND DRAWDOWNS are less on the shorter (which translates into you can make your BUYS or SELLS much larger), but please do not ever say there are no false signals on the daily, as its signals are totally dependent on time of day and what market youre trading in ----- ever see a red daily candle turn green 12 hours later, or the other way around ?
the ABSOLUTE best, as far as noise, is the weekly chart, although one will face some REALLY SUPER drawdowns using that timeframe !
enjoy and trade well
mp
Quote:
Originally Posted by dmeliki
I do understand that one might think that the risk minimal on shorter time frames. I see no benefit in trying to complecate things while trading on shorter time frames than daily. On daily chart the signals might be slow, but there are no false signals as on shorter tf's. The system that I suggested seems to be working just fine. Basicaly do not trade against slow WPR, open and close by fast WPR. The yellow line on WPR's represents empty value. If value on fast WPR position can be closed. One more thing, if close is above LSMA sell is not as strong and more likely not worth taking. No stop losses, just close in time...
For the screenshot see the image on the 1st post.
Why complicate?
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