Does anyone use two different type charts at the same time, ie. time and range? I realize it is probably much better to focus on only one chart but there are certain things I see well in different type charts. I've been SIM trading with a 1 min, 3 min and 4 range and can't seem to focus in on just one (which has me too darn scattered). Just wondering if anyone here uses two type charts at the same time (not two different time charts but two different type charts).
here you have an example, but make your own version for your market ...
and look to 4r and the 30 minute chart. you can also use a tick chart like 233 or go into the deep and take 3 minute chart. you will learn to play with the zoom of your chart and i believe you find a solution ...
IMO one of the key concepts in being a successful trader is to use multiple time frames.
I usually have on my trading screen a 15 min, 3 min, 1 min and either a tick chart or range chart.
(lately I use the range chart instead of the tick)
You should use ones that fit your style. I use these because they 'fit' together for me.
I don't take as many trades as some here and I'm very selective of the trades I take.
I would rather take fewer trades with less risk than to take every trade.
Here is how I use the multiple time frames.
When I begin a trading day, I look first at the Daily or Weekly charts.
It is important for me to know 'where' the market is. Once I confirm what I already know... (the direction on the daily chart).
I look at the 15 min chart.
I look for a 'trade setup' or possible trade setup on the 15 min.
I confirm my thoughts on the 3 and the 1.
Once I'm confident in what the charts are telling me I watch the Range chart and scan the 15, 3, 1.
When a trade setup is seen on the 15 min, I look at the 3 and 1 to confirm.
The trade is ALWAYS taken on the Range or Tick charts.
If I see a trade setup on the 15 and never get an trigger on the Range or the Tick charts then I just wait for another setup on the 15.
This method keeps me out of trouble unless I violate my rules.
Remember, the purpose of different charts is to show you a map of where the market is going.
If you were traveling from New York to Los Angeles, you would look at a map of the entire US to see the best route. Once you began your journey you would look at smaller maps (perhaps state or local) to see the 'detail' of the roads. But even while looking at the state map you would still want to keep the 'big picture' in mind on the US map.
If you don't keep the 'big picture' in mind while looking at the local map, you may end up in Mexico instead of LA.
Looking at charts is the same.
If you look only at the smallest time frame charts then you will have a 'tick chart vortex' and end up running off the road.
Sorry for the ramble.
I hope this answers your question.
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Thank you both for your replies. At first I thought I was crazy using both time and range charts since I have heard many times the best thing to do is to focus on ONE market and ONE chart. I have been focusing on one market since I am new at this (ES) but I have difficulty using only one charts since I "see" different things in different charts. I start the day glancing at the past few days on a 60 minute and a 30 to get the "feel" of what the market is doing. Then I've been SIM trading mostly on a 3 minute and 4 range while keeping an eye on a one minute, especially on sideways moving days. Now I just need to come up with a more consistent method of using these charts as opposed to placing one trade on the 3 minute chart, the next one on the 4 range, then a scalp on the one minute chart, etc. It just gets too "busy" for me which is why I thought I might be better off using just one chart. I just need to figure out how to use these multiple charts to my advantage since they all have something to offer, yet not allow them to overwhelm me.
My best advice for a beginner is not to use more than one chart. New traders have many issues starting out and any additional charts or more than a couple of indicators will just create a bottle neck of confusion. Keeping it simple stupid is the best way to $.
Trading is personal- You find what works for you.
One very popular approach is to use a longer term chart to map out the key support and resistance areas. For example, a 30-minute chart of the last 10 days or so will throw up about 10 clear SR areas (best when a high later became a low or vice versa). And of course you have a sense of the general multi-day swing (if any) cycles.
Also, the LT charts give a sense of perspective. If the 30 minute is turning up and seems like it could make a move soon, from that LT perspective you have an idea of how far it might go. Not in the next 2-3 minutes of course, but if you are waiting for a good setup on your 1 or 3 minute (or whatever) ST chart and it doesn't happen but the market does move up, from the ST perspective it might look like you have now missed the move and indeed might even be strongly tempted to look for a top to short. But looking back at the 30 min, you might notice that of the usual 15 point move for a typical swing, the market has so far only made about 5. Sure, it might not be a real move, and sure, this might be it and the mkt is about to turn south in a big way, but still that LT chart gives some sort of perspective. And especially if the current move is still 7 points shy of the next clear SR level that you have marked, then this might bolster your patience and resolve so that when there is a pullback you are prepared to look for good pullback entry patterns/rules versus feeling that you already missed the whole thing and would be a sucker to get in now on the long side.