How Many Time Frames-es

[itzak 10]

Is there any use in using more than two time frames when watching for retraces on the ES trends. Also what ratio between time frames does anyone recommend?

thanks

[estate1997 10]

I find in back testing that the 4000 bar chart has the highest return on MA cross over. To fast for me to play so it is set up as auto trade.

Good luck

[jonbig04 10]

Is there any use in using more than two time frames when watching for retraces on the ES trends. Also what ratio between time frames does anyone recommend?

thanks

 

I find multiple time frames incredibly useful. I think of it as a forrest-through-the-trees kind of thing. I don't know what ratio is useful, but here are mine:

 

daily

150k vol

30k vol

10k vol

5 sec

[forrestang 10]

I'm trading NQ, right now....and I'd trade the ES the same way, only on the CVB charts I would multiply them by maybe 10.

 

I've got 5 charts right now that I make intraday decisions from 4 are on my screen at all times:

10K CVB - used to pick S/R the night prior, not on screen during trading

2500 CVB - transfer levels from 10K chart to this one, easier to see swings

1 Minute - gauging trend, trade managment, monitor volume on this

5 Second - Entry Chart w/Volume

60 Min - I just put this up there, as of now I am not finding it useful

 

If I were trading ES( and have before), I would replace the 10K with a 100K chart, and the 2500CVB with a 20K CVB.

[Tams 20]

10 multiple is a bit too much.

 

I would try 7, max.

 

 

Also I like to use odd numbers, so that the multiples do not divide into each other easily.

 

The key is to have multiple perspectives of the market;

you want to see the charts sync when the market sings.

If the multiples divides into each other, the charts will sync while the market might not.

[forrestang 10]

10 multiple is a bit too much.

 

.......I would try 7, max......

 

 

I think that depends on what you are using the charts for. I wasnt suggesting it's a correct/direct correlation.

 

The 10K I'm using is soley for picking out S/R. I've used the 100K on ES for the same reason. And the point of the big bar interval is to get as much data in as possible, while still showing some swings for major S/R.

 

The 2500, I simply use to view how price get towards the S/R. While still being small enough to show swing highs and lows. Cause the 10K really won't show it.

[Tams 20]

I think that depends on what you are using the charts for...

 

 

I misunderstood your original post.

My apologies.

[forrestang 10]

No problems, it's good you brought it up, as maybe someone else might mis construe what I said as thought it's a direct correlation of some sort.

[86834 10]

5, 10, 15, 60min, Daily, Weekly and Monthly. The weekly and monthly charts i glance at every now ever couple of weeks

[Kiwi 16]

If you're just picking out support and resistance wouldn't it be better to use time charts rather than tick or volume charts? Why:

- if the time is approx same as v or t then same swings show up

- time is invariant if you use channels or trendlines

- you can read volume at the swings for any advantage that might give you

[brownsfan019 17]

Interesting post - I use 1 timeframe per market being traded. Guess I'm the minority.

[Kiwi 16]

Interesting post - I use 1 timeframe per market being traded. Guess I'm the minority.

 

It is what we would expect bf

 

For the record I tend to use two if I'm looking for support and resistance because the S&R on the next timeframe up is the area where "trend" continuation is most likely to meet dispute (next is typically 3-5x this timeframe although I have become taken with the 15m when considering S&R for a 1m chart). However, if I'm trading trend automatically I use one timeframe but have a couple of mas on the chart and, when you think about what they are (an average of a number of bar closes) then they are a lot like adding other timeframes to the chart.

[starborg9 10]

An article in last month's SFO magazine recommends that you trade the 144 tick chart in the direction of the 2097 tick chart. I tried it, it works where nothing before did (I tried lots of combos).I added the 610 ticks in the middle to give me more entry/exit options, and I'm still experimenting with this (looks promising). I also tested and backtested with 144/400/1200ticks; it looks god too: more profitable (earlier entry) but riskier (too early entry). My additional and most important rule is that I only trade if the ADX tuns up on the 144 (from the lower level the better), signaling the start of a trend. I don't trade countertrends, as they mostly are pullbacks (I trade them when the ADX turns up again = continuation)..

[estate1997 10]

Starborg9,

I took a look at the 144 tick and the ADX indicator. I noticed the ADX indicator is slow.

Try this; Value1 = jtHMA(obv, length);

Plot1(Value1, "FastMA");

You can ad a slower OBV indicator for trend.

That 144 tick is to fast for me.

Best of luck

[starborg9 10]

If you tweek the DMI/ADX you get a awesome indicator. I chose the DMI settings Length=6 Avg Length=8 and the superimposed ADX are Length=10 Moving Avg Length=4. The result is a clear and visible signal when the top DI jumps over or touches the ADX at the start of a trend. I can handle the 144, but I find it not very profitable, so I'm now playing with the 1200/6000 combo and it looks extremely promising. The concept is good, you have to find your own comfort zone. Good luck to all of us.

[electroniclocal 10]

If you are trying to identify vertical movement then range bars work well by cutting the noise out. Look at 5 or 6 ticks on the ES.

Edited November 1, 2009 by electroniclocal
typo

[robertm 10]

If you're just picking out support and resistance wouldn't it be better to use time charts rather than tick or volume charts? Why:

- if the time is approx same as v or t then same swings show up

- time is invariant if you use channels or trendlines

- you can read volume at the swings for any advantage that might give you

 

Agreed.

 

From a macro point of view timed charts also allow you to run a volatility filter over the market (such as ATR) which will not react as it should on tick/range bars as it is a forcing the market into a defined window.

 

At the end of the day record what you see & it will give you the answer. Was the trade with the x Minute trend? Was it with the Daily trend? And also how you determine what is trend (above/below MA, S/R line, time frame etc)

[srag&birdie2 10]

I have always used multiple time frames. I like 3600 and 1600 tick charts because they capture the globlex data well in the ES and other futures indexes. Otherwise, it's the 5 15 and 60 minutes charts

[robertm 10]

During "normal" conditions you can usually find a tick range that will be very similar to a timed chart (ie, match 5M), giving you the same flow of the market, but smoothing out the surges in price action to make them tradable.

 

(that's not really a reply just an observation, sharing is caring :-) )

[starborg9 10]

Thanks for sharing. My observation is that It's more than just smoothing.You can't count on "normal"' conditions in trading, and it takes just one anomaly to hurt you badly. I will always prefer tick charts to timed charts. If I used a 5M chart today I would have really been screwed after the FED rate announcement. I find that the most important thing for me is to have a routine well within my comfort/confidence zone. I read that the pros never change their strategy once it's tried and tested, their goal is to be able to trade while half asleep w(hich happens a lot to me, as I live in San Diego).

[robertm 10]

Nobody said you have to trade anywhere near FOMC :-)

[agiletrader2000 10]

Is there any use in using more than two time frames when watching for retraces on the ES trends. Also what ratio between time frames does anyone recommend?

thanks

 

I do analysis on Daily charts only. I think it is more confidential timeframe. TA works better on this, less noise, more exact TA analysis results. But when decision to open has been made, I can wait for an entering point opportunity based on H1 timeframe.

[thnickster 10]

Only my opinion, but in my experience, for me, I have found that a longer period chart works better. I use a ten minute chart. It smoothes volatility, I can see the trend better..or lack of one, and overbought and oversold areas (extremes for cci and stochastics) are clear and believable to me. Another thing about a ten minute candle is that you can see the volatility direction within a single candle as it jumps and moves. At the ten minute mark when a new candle starts to form you can quickly tell whether this is a real breaking move.

 

Most new traders use either 3 or 5 minute charts. I think 3 minute charts are a disaster for newbies. Anyway they were for me long ago. Calm yourself, wait for your setups, trade 4 or 5 times a day..or less. Only take the absolute best moves. Don't be fooled to jump in on sudden long candle moves. They usually reverse.

 

Anyway..my two cents.

 

Nick