Time Frame, how to master your charts environment

It can be such a headache for any trader who takes position on a market without having good landmarks.

Before entering any market, long or short, you should always consider few things :

– What overall trend is defined ? (bull, bear or undefined trend range)

– What time frame seems to be interesting to trade, considering that overall trend and context level (if it’s near all time bottom value, of course you better turn your bias into Bull mode, cause there’s higher chance that soon or later, the market will reverse and revisit higher value.

Apply exactly the same logic for the Short/Bear trades, if it’s close to all time high (ATH) better turn bias into Bear Mode.

– What target seems to be reachable and realistic ? A trade with a viable plan has more chance to succeed and end in a positive result.

I will say that often, but my mentor always told me: ” Don’t forget to pay the trader “.

It’s always better to end a successful trade than miss profit because you hold it for too long.

– Is the range on a specific time frame, actually worth it.

A trade takes 2 times the fees for a filled order, buy then sell or long then short. If your trading fees are 0.1% per order, then you have to consider a 0.2% minimal range to trade, cause any trade with lower profit, will cost you money instead of profit.

So you need to identify viable and worthy setup, and once identified a good potential range zone to trade, stick to the plan, stick to the time frame (this is very important) to never get confused and miss your way out with profit.
Don’t change time frame on your trade, don’t get influenced by other time frame chart shapes. You took a setup on a specific time frame, stick to it.

That how a AI trading bot would have handle the trade, and that’s how you should always do. Trade must be as pragmatic as possible, don’t get tricked by your emotional feelings and bias. Stay blank and focus on your setups.

Trend context is just a technical factor to consider, to define your bias, but not a future predicting tool. Nothing is guaranty when you take your setup.
Always set a Stop-loss to secure your trade and position size should not be higher than 5% of your total bankroll.

This is the key to long term successful trading experience.

Stick to time frame for each setup and stick to the plan.
Always pay the trader.

Lambo fantasy is a trap.


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