One of the advantages of low timeframes is that you can FEEL the price action.
By “low timeframes”, I’m referring to any timeframe which allows you to watch the screen continuously. So we’re probably talking anything in the range of 5 minute charts and lower.
Operating on higher timeframe charts, where you’re only getting a visual sense of the price movement as each candle closes, you’re missing out on the real-time feel for sentiment that comes through experiencing the way price moves in creating that candle.
Let’s look at an example…
The exits were not perfect. But that’s the nature of exits. They almost always can be improved upon, when viewed with the benefit of hindsight. All we can do when trading at the hard right edge of the screen is manage the risk and potential reward as best we can.
But it’s the entry that I was really pleased with.
The context was good and suggested potential for a directional market (gap down open, with initial uncertainty perhaps trapping a few new sellers who hoped for continuation, then resolving itself in the gap closure direction).
And then given this context, the first break of a TTF candle against the bias direction, was not able to continue lower.
Entry was not a result of confirmation through a bar closing to new highs. It was taken upon recognising that price couldn’t fall. Sellers were not strong enough to overcome the buying pressure.
This was not simply observed through a snapshot view of price movement taken on the close of each TTF candle, but rather it was sensed through feeling the strength or weakness of price movement tick by tick as it moves intra-candle.
This, for me, is one of the advantages of low timeframe trading.
Happy trading,
Lance Beggs