TA question

Hello, guys!


I´d like to know if the principles/rules of Technical Analysis are the same for all timeframes of trading or investing.

That is, for example, does the same principles/rules of TA apply to the day trader using 5 min charts and also the swing trader that uses another timeframe chart, and for investors?


Plus:

- does those principles/rules of TA are the same for stocks, indexes, commodities, or futures?

- does those principles/rules of TA are the same for stocks, indexes, commodities, or futures in different timeframes or trading activity (day trading and/or swing trading or investing)?





Thanks a lot.

I think TA applies to all instruments on all timeframes. Weekly charts & trendlines are much more powerful.

I see.

But, a day trader has no need to trade in a weekly chart, right?

Not to take daytrade setups from no, but it helps to know the bigger picture. Your 30 min chart may show a short setup, but in the bigger picture you could be at support. I look at a weekly on weekends, weekdays I watch a daily, a 4 & 1 hour down to a 5 min ch. When all timeframes are trending your odds are better.

Well, I´ll write a more complete thread about this suject.



I´ve been wondering about several things related to day trading.

I have several (good) books that I´m reading. The first book I´ve read was "A beginner´s guide to day trading online", 2nd Ed, of Toni Turner. I enjoyed reading it and I´ve learned from it.

At the moment I´m reading "Come into my trading room" of Dr. Alexander Elder.


I´ve day traded so far (part-time in the last year in a half). I feel I´m getting more experience and knowledge, but I´ve have a titanic way to go and so many things to learn!!! Right know I´m testing a new CFD´s broker, and I confess I´m liking it very much. The spreads are lower and it directed simply to trading, wich is what I do. My real broker (the one I trade for real) is more direct to investing and the spreads are quite higher... :\

So, I just day trade with CFDs! :)


I´ve two questions I´d like you to guys to answer me, please:


1 - Are the technical analisys rules (and indicators) appliable to all timeframe charts and trading periods?


I usually use 5 min charts to do my trades (I do range trading, scalping and contrarian trading) and use 30 min chart to get a better picture of the market (sometimes 1 or 2 hours charts. I also look for daily charts, but not too often).

I traded CL before (for real, and I had small losses), but since I started trading (paper trading in the broker I´m testing) the E-Mini SP500, my gains increased greatly. Lower spreads and broker tools and quality helped a lot.


All the charts I´ve seen so far, are hourly, daily and weekly, on "Coming to my trading room". Toni Turner´s book has minute charts. So, how does a day trader act trading with hourly or daily charts???

All of the indicators recommended in most trading books come with daily charts examples. So, how does a day trader act with a 5 or 10 min chart? The way to act regarding some patterns and some indicators, all come with daily chart examples. So I ask, do we do the same when we have a buy or sell signal in a 5 min chart???


2 - Are the technical analisys rules (and indicators) appliable to all timeframe charts and trading periods, and regarding all instruments (stocks, futures (indexes and commodities) and forex aswell?


I haven´t day traded stocks so far, I just traded futures (CL for real, ES, GC and ED with paper trading).


The next books to real are the following:

- "High Probability Trading" of Marcel Link;
- "How to make money in Stocks", William J. O´Neil;
- "Diary of a professional Commodity Trader", Peter L. Brandt;
- "Starting out with futures trading", Mark Powers;
- "Winning in the futures market", George Angell;
- "The New Sell and Sell Short", Dr. Alexander Elder.


I have more, but for the moment I´ll focus on these!


Thanks a lot! :)

2 - Are the technical analysis rules (and indicators) applicable to all time frame charts and trading periods, and regarding all instruments

The Grand Unifying Theory of Market Technical Analysis ?

Unless you have an IQ above 150 I suggest you leave that one alone.

If your in this to make money, find one or two things that work for you and specialize.

I suggest you start by reading this book.

Well said pt, find something simple that works for ya & stick with it until you master the mental part of this game.

http://www.mypivots.com/board/topic/808/-1/with-only-one-setup-you-can-still-win