Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom??

Most of us may have traded almost all TFs once or more....though 60/30 mins is much better TF then others (specially for Saint 60/Intraday methods)...just wondering what are our experiences in using different TFs for all three type of trends (bear, bull, flat)...

As "Asian Paint fame...har ghar kuchh kaheta he"....I believe every TF has or some or other important price/volume action information useful for setting hindsight for trading...specially in terms of Opportunity,Reward,Risk and Whipsaw

Just wondering what suits best when and how to whom??

Example...I gathered from other posts that Weekly charts can spot the true volumes and overall trend and can catch Market Makers Games...

Also lower TF has higher risk and lesser rewards...on other hand higher TF has lesser risk and little higher rewards...

Also often a time we analyze Monthly, weekly and daily floor Pivots, Fibo retracements...which TF values can be more helpful??

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

I dont agree with you here Nisha, if seen objectively, risk per trade is lower in lower time frame and much higher in higher time frames and overall win/loss ratio are the same for both Higher and lower time frames.

The only difference being, you can expect much bigger profits per trade in Higher frame trades but the downside is that there is equally larger risk required.


Time frame is totally Personalised thing and will vary from a trader to trader, there cannot be any Clear cut winner for Best Time Frame, neither Daily, weekly, monthly nor 60 ,30, 15 min

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Time Frames, Opportunity, Risk Reward Ratio Can All Be As Varied As The Number Of Traders & Investors Involved In The Markets, So Where Does One Start.

Or Are We Trying Identify What Would Be Ideal Through Consensus.

If Yes, Even That Would Be Difficult To Arrive At

Prabhjeetrana, Is Correct About TF & Profit.



Happy & Safe Trading

SavantGarde

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Time frame does depend on trader but on the amount of data ACCUMULATED.
So in initial stages TICK BY TICK then 0.1 then 0.2 so on.In order to get TREND
a higher time frame is useful and for actual trading a lower time frame will help.
As an example last trading day's NIFTY FUTURE is enclosed.(0,1,2,3 sec intervals)

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Just an attempt to unwind and do bit of unlearning and relearning about TFs in terms of Opportunity, Risk, Reward, Whipsaw...

Indeed, couldnt agree any less with Prabhjeetrana or you about risk/reward ratio....broadly What I meant was..lesser the time frame higher the chances of a trade getting whipsawed/trapped into Market Makers price/volume action moves at a times rather then earning points risk....

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Hi Nisha,

Notice That Risk In My Post Precedes Reward....I Wish It Was So In Your Title Too....If Risk Is Managed Reward Can't Be Very Far.

Happy & Safe Trading

SavantGarde

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Savantji
Agree on your point but then too there is the traders holding capacity heat bearing capacity and the overall condition of the market and ones trading purpose which also define the Tf one uses.

But one thing is true lesser the Tf higher the no of traders and more earnings to brokers and other expenses. with lesser the profit. And as no one one really predict the market it becoemes more difficult maybe not for a few who are successuful but for the general.

And higher the Tf more clear is the trend. Less Trancation less brokerages but tons & tons of patience to wait for the (Rome to be build ) to catch the Big move.

So it is all about what you want
why are u here for St/ Mt or Lt trading investing.

One needs to find out first what we want and in which Tf one is comfortable and profitable.


Just my view not in any way contradicting anybody as i said it is all based on our requirements

Happing Trading & Investing

St

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

A general rule is that the longer the time frame, the more reliable the trading signals. As you move down to smaller time frames, the charts become more polluted with false moves and noise. Ideally, traders should use a longer time frame that they are comfortable with. My ideal smallest time frame would be the hourly timeframe.

Here are some general guidelines for time frames!

A swing trader, who focuses on daily charts for his or her decisions, could use weekly charts to define the primary trend and 60-minute charts to define the short-term trend.

A day trader could trade off of 15-minute charts, use 60-minute charts to define the primary trend and a five-minute chart (or even a tick chart) to define the short-term trend.

A long-term position trader could focus on weekly charts while using monthly charts to define the primary trend and daily charts to refine entries and exits.

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

Good discussion here on timeframes. Each timeframe has its own advantages and disadvantages. Time frame one should trade is also a function of one's personality and mindset. The easiest way to find out whether the time frame you are trading is right for you is to observe yourself.... if you are tense trading that TF something is missing... either you are overtrading,not adequately capitalised or wrong timeframe.

I have seen that mismatch between the TF one trades and the TF with which he is comfortable is one of the main reasons for failure in trading. A great scalper will be miserable if he tries to swing trade and has to sit on his winning positions for days and also add to his winners. A great swing trader or a position trader will be lost if he tries to scalp the market on 1 min ( I am told guys are using 1/2 min TF now, JAI HO....)TF and will go crazy with the up/down small movement he is not trained to catch as a swing trader. This is not to say that this transition is not possible,it can be done but needs to be done gradually with one's mind fully at rest.

No TF is right or wrong or superior or inferior and the one which you enjoy trading is the right one for you.

Just my 2 cents.....

Best Wishes,Tradewell (whichever TF you like)

Smart_trade

Re: Time Frames Vs Opportunity-Reward-Risk-Whipsaw : what suits best when, how, whom?

:thumb:

When I first started trading I started off with intra-day because of lack of capital and being plain dumb. It was also the IN THING to be a day trader in the late 90's! Now I prefer to hold positions overnite and call myself a Swing Trader!