I've been trading for a few months now and I have good trading plan focusing on "with trend" entries. I trade on 5 minutes charts using Horizontal S/R levels.
The problem that i am facing is to decide the intraday trend (for next few hours). What should be my look-back period ?? 2 days , 5 days ?? or just 1-2 hours of the current day ??
Please see the chart below and advise me which option should have been given more preference. I would also like to know for experienced traders how do they decide the intraday trend which might prevail for next 3-5 hours.
By identifying the overall market direction on the higher time frames and looking for entries on the lesser time frame would be the best idea.When we choose any of the time frames to look at, time frames too close together can sometime be confusing. It is recommended that times frames should be at least four times apart.
If your are Wa tching 1 hour chart then the 30 Min chart will not provide anything useful that the 1 hour chart already does. You are likely, however, start to see clear cycles on the 15 minute chart. So if you using anHigher time frame of 1 hour, the lower time frame should be at the highest possible value, 15 minutes. And if you use anHigher time frame of 30 minutes, the lower time frame should be at the highest possible value 5 minutes.
This will Give You a Clear picture of overall view different Time frames.