I just want to take the opportunity here to remind those on higher timeframes that almost everything I write should be thought of as largely timeframe independent.
Most of the examples I provide will come from very low timeframe charts. Why? Because that’s what I trade!
But while the chart images I show in newsletter articles may be from a timeframe that is vastly different from your own trading business, this does not mean there is not value in my writing.
Look beyond the charts to find the ideas, concepts or principles that are relevant to price action traders across all timeframes.
It’s about the principles… it’s not about the timeframe!
The YTC Price Action Trader analysis and trading plan is adaptable to all markets and all timeframes.
The YTC Newsletter articles also have application across all markets and all timeframes.
You just need to think a little to see where it may fit within your own business plan.
We’ve talked higher timeframes on occasion… both through my own examples and through those provided by readers:
But this is clearly not evident to all traders.
Following last weeks article on the first pullback following a structural change, I received a notice of an “unsubscribe” from one trader, who stated the following: “I am into end of day trading. Each week you seem to start off with a 1 minute chart and that is not for me… thanks”.
I have no problems with unsubscribes. I’m happy for people to leave if they’re not getting value or not liking my writing style. But to leave because the timeframe is different to your own… it’s just a shame they couldn’t see the principles beyond the chart. The first pullback following structural change is a concept relevant to all markets and all timeframes.
Interestingly, I also got two emails from other traders discussing higher timeframes. Both these guys get it!
First from RL.
Its been a few years since I emailed you, but I continue to read and learn from your weekly updates. Thanks again for taking the time to do that.
I am a longer term trend trader, so I use the weekly charts for my trend identification and the daily for entries. I was reviewing my entries this past Friday morning in the States (before I got your email), and noticed once again that the 1st pullback after a breakout is really the best place for me to enter a trade.
I use stochastics to help identify the pullbacks as my brain tends to get overloaded just looking at a price chart, but that’s just me. I also like pullbacks to the major moving averages (like the 50D), knowing that many traders are looking at this too.
I was excited when I saw your email later in the day about the 1st pullback after a “structure change”. For me, a structure change is something like a Higher High or a new 20D High. And on many of those situations, I now realize that trading the breakout isn’t the optimal play, but waiting for that 1st pullback (if it happens) is really the highest return for $ risk I can make.
I thought it was great that you would write about this on the same day that I re-discovered it and (perhaps) will finally accept it and build it into my trading plan.
Hope all is well, and happy trading
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