As said, you can choose them based on your preference (risk aversion).
Day trader? Choose: 5er, 15er, 60er and Daily.
Short Swinger? 15er, 60er, Daily and Weekly.
Long Swinger? 60er, Daily, Weekly and Monthly.
Long term investor? Weekly, Monthly, Quarterly and Yearly
So, what should we be looking for?
Our entry will be always in TF3. This entry should be confirmed by TF1 and TF2, which are bigger than TF3.
Adding to this, TF4 should not be negating TF3.
We have 2 SCENARIOS:
I'll explain first one, then second one.
First one:
TF1 is an actionable signal and has a CLEAR target (meaning it is NOT a continuation pattern). Also, it MUST be already in force and heading towards target. It is important that it hasn't already hit it
Simultaneously TF2 should not be negating it.
As long as:
- TF2 is in force (may be a continuation or not)
- TF2 may be inside. If it is, then, IT MUST be same color than TF1.
-TF2 negates TF1 if it is in force in opposite direction of TF1, or if different color than TF1.
If TF2 negates TF1, we DO NOT enter on the actionable signal on TF3.
If TF2 is inside (meaning not in force yet) , we want preferably that:
TF3's target ( you MUST check @TradeSniperSara Combo CheatSheet) turn TF2 in force, so this keeps confirming TF1 towards its target.
So, at this point, we have a clear entry and target (on TF3) given some things MUST be happening in TF1 & TF2.
Lastly, we should have TF4 not negating TF3.
Here, we have @RobInTheBlack giving the tip of using PARABOLIC SAR. If it is in the same direction of TF3 entry, we enter.
If TF1,TF2,TF3 are bullish but TF4 parabolic SAR is bearish, we don't enter, as it probably be doing a TTO on the TF4 timeframe.
We wait for confirmation, and when every condition is met, we enter.
TF4 should always be confirming what we see on TF3.
If TF3 hits target and it doesn't reverse, we wait for it to hit TF1 target.
If we see some reversal on TF4, we reduce position.
Second scenario:
We have TF1 WAS in force, but not anymore. Say it's green.
We have TF2 is in force to the downside and red.
We can enter on TF3 actionable signal to the downside (despite having a green TF1).
If TF4 doesn't negate TF3, we can enter.
We add/reduce based on what I said before.
IMPORTANT π:
-If TF1 in force in upside and TF2 in force in downside (or vice versa) we DO NOT trade.
-TF1 and TF2 both inside, choppy, we DO NOT trade.
- actionable signal on TF3 negates TF2, we DO NOT trade.
-Either TF2 or TF1 MUST have a clear target. In scenario 1, TF1 has a clear target, in scenario 2, TF2 has a clear target.
-WE ALWAYS ENTER TOWARDS CONTROL GROUP. ALWAYS.
-We want to enter on the same direction as the market for higher chances.
I know, I know, this may be hard to digest at first.
Re-read this and write down notes and this will be much more clear.
I know TF1, TF2... may be confusing but:
Say you are a daytrader, replace:
TF1 = Daily
TF2 = 60er
TF3 = 15er
TF4 = 5er
And be happy. Much more clear.
Same applies for Short Swinger, Long Swinger & Long Term.
The maximum amount your trade may take is TF1 in scenario 1 or TF2 in scenario 2.
This is it!! β β β
If you enjoyed and it helped, make sure to share so other #TheStrat members can get this.
If you still confused, let me know, I'll happily answer.
If you think there's something wrong, let's debate.