The Ruff Guide to Trading: Make Money in the Markets by Steve Ruffley

Author:Steve Ruffley [Ruffley, Steve]
Language: eng
Format: epub
Tags: Business & Economics, Investments & Securities, Stocks, Analysis & Trading Strategies
ISBN: 9780857194008
Google: l_tcEAAAQBAJ
Publisher: HarrimanHouse
Published: 2015-09-30T20:22:02+00:00

Chart 17: USD/CHF H1

As with all the candle patterns I have demonstrated, the element of time is a very important factor.

I will cover gaps in more detail in their own section later in this chapter.

4. Time frames and support and resistance

Short-term traders can fall into the trap of looking at tick or minute data, thinking this gives them the best view of what will happen next. Looking at a one minute chart for example – the lowest time frame I use for technical non-data trades – within 15 minutes you will get 15 potential signals. For a chart spanning one hour, which is what I focus on, you’ll of course get 60 potential signals with minute data.

So if you are an intraday trader and basing a trade on 15 or 60 signals at a time, what are your chances of success?

My view is, why not zoom out to the 15m or hourly charts and get four signals over one hour or even just one better quality hourly signal? Remember that both these time frames are made up of the same minute data. For longer-term trading you may want to use daily closes or opens for your areas of interest and trade entries.

You will want to look at points of attraction from the bigger picture and the higher time frame that you are entering the trade from.

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