WRR

Hi OAC, I am not a vendor. I was just explaining how I use multiple timeframe charts. I agree with you that If I had used the term pivot high and pivot low instead, it would make no difference to the method I explained. It is a way I use to identify high and low points for support and resistance and to draw fibs. And this often results in different levels for the same time period depending on the chart time frame. Cheers, WRR

Here is an interesting report on placing stops. http://www.webtrading.com/specrpt2.htm WRR

Here are some of my thoughts on how technical analysis may differ with Forex than when trading stocks. Some quick notes on volume. The volume on many broker charts, if they have it, is often only the volume of their clients. Apparently Esignal charts gather volume from many brokers and banks so this gives a better proxy of volume than other sets of charts. Since there are thousands of banks and brokers around the world and Spot FX is an over-the-counter market with no central clearing, there is no true volume available. Prices on charts will vary from one set of charts to the next due to different spreads, liquidity providers and broker manipulation unlike a single set of prices for regulated markets like stocks and futures. Since so many free real time charts are available, it is wise to have more than one set running to compare prices and in case one set is frozen or is disconnected. Gaps are rare in the FX market compared to stocks and futures due to huge liquidity and 24 hour nature. Most often they are only seen over the weekend or after major world event news. Opening range and start of day breakout strategies may be less effective due to the 24 hour nature of the market. Start of session strategies at the open of country's market are sometimes used instead (e.g. Japan open for Yen pairs, European open or London open for European pairs and the Pound and NY open for all USD pairs especially America's pairs such as USD/CAD and USD/MXN). Start of day strategies may prove difficult as daily candles may start at different times of day on different charts. This also means indicators on daily charts may show different readings from chart provider to chart provider. Similarly, since different charts start at different times, any candle greater than 1 hr and less than 1 week can look different from chart to chart as the start time is different. For example 4 hr candles on GMT charts can appear entirely different than on GMT +2 charts. Charts with Sunday bars can really cause problems with indicators such as Average Daily Range, Average True Range, Pivot Points, Moving Averages etc., especially on daily charts. The Sunday candle is always just for a number of hours instead of a full day. One other matter is time zones and daylight savings times. One really needs to be on top of what countries and markets use DST and when they change back to regular time. Same with some charts. One needs to check to see if chart time zone has changed. Also some charts stay at same GMT offset year round and others change to DST and back at chart provider's home office time or at the chart providers whim. Sometimes they change to DST and back late. Some charts allow one to change the start of day time or time zone, others do not. Charting problems can be overcome but you need to be aware of them. One can often avoid certain sets of charts for certain strategies or get customized indicators to deal with these matters. WRR

Here are a few things I look at on multiple timeframes. First of all, I sometimes use a fractal indicator that shows fractal high and fractal low points. The indicator draws an up arrow on top of local fractal high bars (a bar which has at least two bars with lower highs to the left of it and at least two bars with lower highs to the right of it). Similarly it draws a down arrow on bottom of local fractal low bars (a bar which has at least two bars with higher lows to the left of it and at least two bars with higher lows to the right of it). I say sometimes I use this indicator because I usually can quickly spot fractal highs and lows without using it. Now I will use these points as local support and resistance and also as points to draw fibs. So I might draw SR and fib off 1hr chart then do the same off 4hr and/or daily chart. Sometimes the fractal high and low points will be the same in different timeframes, giving them more weight, but often they will be different. This now shows me multiple possible targets for stop losses, breakouts or retracements with greater weight going to the nearby SR and fibs on the higher timeframe charts. It gives you a big picture view before you pull the trigger. As for the self-similarity idea, Elliott Wave is a good example, In wave one on a larger time frame chart, one could have a complete 5 wave pattern on a smaller timeframe chart. A further use for multiple timeframe charts is as a guide for trade direction confirmation. If the current bar on all the timeframes you use are in the same direction, then the trade has stronger momentum and directional bias. WRR