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  1. #1
    Rookie Member

    Dear traders: time-frame on the charts + expiry !!!

    Dear fellow traders,

    When I may ask here?

    Can someone (or an more experienced trader) tell me what kind of time-frame on the chart he uses for picking his expiry on the option? I have the feeling i pick always the wrong expiry. I am concentrating on end of day expiry right now, any idea what you look for? Meaning in theory is should go from low to high time-frames. I know. But for instance on the 4 hour chart most indicators look good, but on the 1 hour chart not perfect? Do not enter than? But than it looks i can make never make one trade :-(. I am relative new to this, so do not see me as an fool.

    Best regards,

    Kami. S.
    Last edited by Kami Sugiyama; 06-24-2013 at 02:29 PM.

  2. #2
    Legendry Member Michael Hodges's Avatar
    it is definately tricky. for end of day expiration it sounds like you may be using a time frame that is too long, try starting with the daily charts to determine the near term trend....that is the trend over the last 2-4 weeks, then move down to the 4 hour charts and wait for that chart to show the same trend then move down to a 1 hour or 30 minute chart to look for a signal...of course it really depends on what types of indicators you are using and if you are trading with or against the prevailing trends.

  3. #3
    Rookie Member
    Many thanks sir,

    I try to go whit the trend, using the ADX, DMI, PAR.SAR an the MACD, But mostly when the MACD look,s good on the 4 Chart, rsi is already around the overbought/oversold level on the 4 H chart and the 1 h chart, should i than, def stop looking for further declines.rises than? or is there something i have to chance on the value? of these indicators? Or do i not know what i talk about? Anyways the same indicator have to look the same on the 4 charts you mentioned? I am relay happy whit your previous answer. For now it looks when indicators look good on the 4 chart, the action is over before it starts. :-)

  4. #4
    Legendry Member Michael Hodges's Avatar
    Start with a top down approach and remove some of your tools. I suggest you use the MACD and a 5 year chart of weekly prices, draw some trend lines and support resistance lines and see what you think. What does the MACD tell you? Where is MACD in relation to the lines you have drawn? What does the trend look like?

    Once you have answered these questions move down to a 1 year chart of daily bars. Which of your lines are still present? Where is price in relation to them and what does MACD look like here? Draw some more lines here, if they are appropriate. What is the short term trend and how does it relate to the long term trend? Is the weekly chart and the daily chart in line with each other or contrary? What kind of trades look possible and which ones look most likely to succeed based on your analysis? This chart will be good for making trades with 4-28 days of expiration. Trades that line up on both charts are likely to have a longer time frame then trades with the daily charts moving counter to the weekly charts. Trade like this for a while until you get the hang of it a little better then you can move down to an hourly chart. I have never used 4hour charts...don't have much to say about them. Also, as for other tools, they are all useful but are not all used the same. SAR for example is good for very short term trading and does not neccesarily follow the underlying trend. Choose one be it MACD or something else, learn it, then learn another one and how the two interact.

    Hope all that helps.

  5. #5
    Specialist Member marvel's Avatar
    Quote Originally Posted by Kami Sugiyama View Post
    Dear fellow traders,

    When I may ask here?

    Can someone (or an more experienced trader) tell me what kind of time-frame on the chart he uses for picking his expiry on the option? I have the feeling i pick always the wrong expiry. I am concentrating on end of day expiry right now, any idea what you look for? Meaning in theory is should go from low to high time-frames. I know. But for instance on the 4 hour chart most indicators look good, but on the 1 hour chart not perfect? Do not enter than? But than it looks i can make never make one trade :-(. I am relative new to this, so do not see me as an fool.

    Best regards,

    Kami. S.
    Hi Kami,

    Welcome to CommuniTraders! It is great you are thinking on these things! They are probably the most important in trading and every one should start from time frame selection. Most experienced traders use not only one but several time frames when picking their entries. The best approach in my opinion is to start from higher time frame, for example H4 and if it is appropriate to go to lower time frame like H1 if both are favorable you will take the trade. I personally prefer H4 for weekly trades and H1 for daily expirations. If I trade short term I chose mostly 30m or 15 minutes and 1 to 4 hour expiry. It depends very much on the instruments you trade and on the system you have. It is better to have smaller number trades with better wining potential, than many trades with poor potential. So one or two trades per day is enough for me! I hope this will helps you If you have any other questions we will be glad to help you

  6. #6
    Rookie Member
    Many thanks guys, many indeed

    I was revering from low to high time-frames, but meant of-course the other way. But i will defiantly check the time-frames u use for the expiry's.(very helpful) I was trading weekly expires to. But was overcome by the news-event that came out over the week. Many days in the M last days out of the M because of the news. And that did me wrong. That is why i wanted to trade in between. Hmm but maybe when not imported news comes out that week, the weekly trades will not suck after-all. I will pick 1 D 4 H 1 H chart's now for the weekly and end of day. When MACD looks in the right direction. RSI is not already in the red zone. (at least that is what i use it for, not to pick counter trends but to see if it not can stop the movement i am looking for, out. When i talk bullshit i will notice it :-) whit the trading. :-) And indeed a few trades a day is good. I was over-trading, And loosing to much. lack of discipline.
    Last edited by Kami Sugiyama; 06-25-2013 at 05:48 PM.

  7. #7
    Senior Member Deanfx's Avatar
    Hi Kami and Welcome!

    You shouldn’t overtrade. That is the most important initially, than you have to stick to your prefered time frames and to trade only when good setups are in place with conservative money management. If you follow these rules you will quickly find the right way to make money from the market.

  8. #8
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Deanfx View Post
    Hi Kami and Welcome!

    You shouldn’t overtrade. That is the most important initially, than you have to stick to your prefered time frames and to trade only when good setups are in place with conservative money management. If you follow these rules you will quickly find the right way to make money from the market.
    Definately, you should not overtrade. Decide what makes a good signal for you, then you must have the patience to wait for it. That was really hard for me to learn and overcome....

  9. #9
    Rookie Member
    Yes, the last 2 day's i just fine tuned the charts on your advice on all that there is to trade for just observing, and did not get angry that i missed all the good setups. The last good trades i took, where more of an good luck, some pips in the M than good sense.The 3 signal service i have, where more of confusion than an learning experience for me. They all contradict in 90% of there predictions for end of day expiry. Butt... it is not all random. Well i am just going to observe more first, bevore i take an trade again. But the charts look good now thanks to you. What you think of an binary option where you can next to the expiry put an price-level in the market to close it early? Would be nice, because i think a have good entry's but he expiry time is the problem. The same trade's my take profit on Forex kicked in, but i stayed to long in the binary? Anyways, i have to read an lot more i see. But BOTS is here so.
    Last edited by Kami Sugiyama; 06-29-2013 at 12:33 PM.

  10. #10
    Specialist Member runneroption's Avatar
    Hi Kami

    There is much more to learn before start trading successfully. It is not that simple and I am not advising you to follow any signal provider unless you understand very well the market dynamics. Better to read, watch and demo trade, and only after you gain enough confidence in you abilities to understand what is going on, only than to trade real again! I am sure you'll find many valuable articles in BOTS

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