Thread: Retractments
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Old 15-10-2004, 02:41   #16 (permalink)
MickMason
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Hi nzbryant

Which time frames are best is debateable and a lot of traders advise looking at the 'bigger picture' to determine longer term trend and only ever trade in that direction, using shorter time frames to fine-tune entry. It's slightly different with a short term scalping strategy, overall trend direction isn't so important as it's the immediate market reaction to a chart pattern being exploited. 15min charts seem to offer some good short term trading opportunities and it's relatively unimportant what's happening in 1m or 30m charts. Which time frame(s) are relevant will depend on how long you intend to stay in a trade, there's not much benefit from looking at the weeklies if you're an intraday player in my opinion, a weekly chart may clearly show a short trade while the hourly may show the complete opposite.

There shouldn't really be any rush to enter a trade, forming patterns rarely creep up and take you by surprise, which should leave plenty of time to look at stops, potential profit, entries, and trade size. If you aren't given time to plan the trade properly then I'd say give it a miss, impulsive trades rarely work out.

Hope that helps

Mick
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