A very common question I get (maybe once a week) is whether or not my price action methods are relevant to traders who wish to operate on higher timeframes. That’s understandable I suppose. The vast majority of charts shown on my website are focused on lower timeframes, because that’s where I currently trade. The YTC Price Action Trader course is focused on lower timeframes using a combination of 30 min, 3 min, and 1 min. My personal trading of the strategy has shifted slightly lower, with a 5 min, 1 min and 15 sec combination.
It’s been many years since I last traded up around the 1-hour, 4-hour or daily timeframes – those higher timeframes no longer appeal to me for lifestyle and trader-psych reasons.
However, I have no doubt that the concepts underlying my strategy (and all price action lessons on my site) are applicable to these higher timeframes. Ultimately, price action analysis is based upon human decision making and how that creates areas of supply and demand imbalance. This is the nature of markets, and it’s applicable in all markets and all timeframes. So yes, I believe the price action lessons on this website and associated ebooks are relevant to higher timeframes. For all examples shown on my site (unless stated otherwise) feel free to ignore the timeframe of the chart and scale up to your preferred timeframe.
I’ve dealt a little with timeframe selection before (here, here, here and here). The key point being that there is no right or wrong timeframe. There is no “best” timeframe. Rather, the important thing is to find what is best for you. This will largely be dependent on your lifestyle, your personality and to a lesser extent your financial circumstances.
If your trial and error process of timeframe discovery leads you to an interest in higher timeframes, there are some issues you need to consider that will not be featured in my material. In particular working out how to scan the whole universe of stocks, or even the smaller universe of forex pairs, in order to find those that do offer trading opportunity. I don’t cover issues like this, as it’s not applicable to how I trade.
But the flip-side of this extra work offers you the one advantage that I’ll concede higher timeframe traders have over us lower timeframe traders – the ability to specialise in your preferred environment type (or even in one preferred setup within one preferred environment if you wish to take it to even greater degree of specialisation). While I’m left having to manage whatever environment my single market offers that day, a longer timeframe trader can simply scan through all available markets to find that which best suits their style of trading.
For example, any higher timeframe forex traders who wish to specialise in a trending environment, should have had the JPY pairs as their highest priority for the good part of the last six months.
Let’s look at some examples (no I didn’t trade these… I don’t trade this timeframe… they’re examples only).