Millbrook

I trade eur/usd on a daily basis. I used heiken ashi to determine what timescale was the most appropriate and concluded that 5 min. was 'best'. By this I mean it showed the turning points most accurately. Because I prefer tick charts I then substituted the 5 min for 450 tick. Your point on psychology is interesting because I cannot resist looking at a much lower timescale. So I use a 50 tick chart as well as the 450. When both show an entry/exit I trade accordingly. I also use momentum based indicators and these have to be in synch on both timescales. The only exception may be when the market is ranginging when I'll use the bolly bands but will set the parameters for the 50 tick chart to more closely match the 450 or the current range. You need to be disciplined and be prepared to take the small trades. In effect it is a range based strategy which catches the breakouts. Breakouts can be added to when the lower timescale gives a further entry and the higher timescale remains unchanged. It's an approach under development because although I identified the opportunity through visual backtesting I couldn't trade it at first because of the psychology of it. I tried to break from watching the lower timescale charts but couldn't so had to work at finding a way to integrate the intellectual with the emotion. It's work in progress but I have just checked the entry and exit signals (by the way an exit signal then becomes an entry signal to trade in the opposite direction) for Thursday 8 March and the number of trades is shown below against the range of pips; 5 -10 12 trades 11 - 20 3 21 - 30 2 31 - 40 2 40+ 3