Train with lower time frame charts, trade with higher.
We often like contrarian solutions. It says ‘doing something different from the crowd’.
About day trading they say: ‘do not’, ‘it’s risky’, ‘short-term volatility’, speculator’.
In the assimilation of information from a lower time-frame chart is the determination of probability possible?
Often it is not.
In a figure title in The Intelligent Investor Graham uses “the faster you run, the ‘behinder’ you get”.
He makes a point superbly by showing a bar chart that reflects the extremely patient keeping their gains and how the hyperactive made their broker rich, not themselves.
A dilemma, however, is that a technical trader dealing solely in the higher time frame will not trade often enough to gain the necessary skills to succeed.
The day trader is the tennis player that is on the court all the time. She attempts shots from every angle, overhead, volley and smashes.
The higher time frame trader, in this simile, takes a couple of swings a week or a month – are they match ready?
Traders with experience, skill and emotional stamina might profit in the lower time frame. For the rest of us, this area is our training ground for the higher charts.
What higher time frame to choose depends on our circumstances and personality. The 1-hour bars are the lowest so-called higher time frame that we ought to consider.
We favour the 1-hour, but we are happy to trade full-time intraday.
Others may prefer the daily bars.
For UK share traders using daily bars this is fine but other areas such as FX then New York close bars are required for correct price action.