Raghee from IBFX says:
“The idea behind my trade entries is to focus on what the pair and the specific time frame is telling me. The “message of the market” can be seen in a different light across the individual time frames. This is a concept that many traders miss. In fact, the most commonly followed time frame may be the daily and it is this time frame that is most often used to determine a pair’s trend. But this view of the a pair would cause a trader to miss out on market cycle shifts that can commonly be seen intraday especially across shorter term time frames like the 15, 30, and even 60 minute charts.”
I would agree and disagree with this. Agree with it to an extent, in that yes, different timeframes CAN and DO display different pattern and technical behaviour compared to other timeframes. So yes, it is possible to “attach” a particular behaviour to a particular timeframe (just like it is possible to attach a particular behaviour to a particular pair), however, does this mean it’s actually possible to create different trading strategies based on different timeframes, under the presumption that you’ll see unique behaviour on any given timeframe? I’m not so sure.
And this is the part where I disagree. Even though timeframes do have their own patterns, behaviours, etc… just because this is the case it doesn’t necessitate that these patterns are mutually exclusive of each other. Because let me tell you one thing – ALL patterns occur across ALL timeframes and across ALL pairs. So yes, by all means go ahead and start trading the daily with an emphasis on long swings, but at the same time, make sure you’re ready for the times where it becomes real choppy – imitating the typical behaviour an M5 chart.
