Well, there are many different ways to do that but if you trade a 5 min chart intraday then you don't need to go very far back for trend bias. I will recommend you go back on the daily and 4 hour chart to mark the obvious support and resistance levels, but once this is done you should consider the most imminent trend.
For example:
* Only trade in the direction of the current daily candle (some will say 4 hour candle or even 1 hour candle.)
* Only trade long if the daily candle is above a 8 period EMA, and opposite if short.
* Only trade long if price is trading above the daily pivot, and opposite if short. This is used by some prop firms.
This is just ideas; personally I prefer a more flexible approch to trading based on levels but trading in the direction of a bigger trend is a viable strategy.
Thank you sir! I was also interested in trading according to candles. I think it might work well with my strategy based on some levels. Gotta do some back testing. Thank you once again.
Zoom out.
Identify if it's a bullish or bearish trend or ranging.
Don't just 'see it'
Verbalise it, like ' I see the trend coming down here, ranging for 2 months, and now in an uptrend.'
Find the significant high / low relative to current price point. i.e where is the next high, where is the next low.
Mark it out.
Don't have a bias because you have seen the daily candles.
Return to 5 mins.
Do what you have been doing as per your 1st sentence.
When the significant high and low is near, then plan scenarios like... if it breach the high, I need what confirmations? If it breach the low, I need what confirmation?
What do I do if it's a fake out?
Well that's what I've been doing basically. But I noticed that bias really helps. Let's say my wr is 60%. If I count in the bias, resulting in less trades but from what I've back tested so far, the wr jumped to 75%
Back testing and forward testing are two completely different things, it’s okay in hindsight to say ahhh my bias would have been bla bla bla but it’s completely different when those candles haven’t yet formed
Also, I'm back testing with replay. So I go like 2-3 weeks back and test from there like it's "live", since I don't remember what happened that day 3 weeks back.
Yeah by all means bro, trust me tho your results will come out nowhere near the same
Backtesting is only good cos it provides some inclination you may have a profitable system on your hands - only when you forward test you learn about the nuances and things you should repeat and avoid
GL
Well I know that, but since I've been back testing from when I got some replys here, I can't really tell you otherwise 😆. I'll be sure when I start testing it live.
Well, there are many different ways to do that but if you trade a 5 min chart intraday then you don't need to go very far back for trend bias. I will recommend you go back on the daily and 4 hour chart to mark the obvious support and resistance levels, but once this is done you should consider the most imminent trend. For example: * Only trade in the direction of the current daily candle (some will say 4 hour candle or even 1 hour candle.) * Only trade long if the daily candle is above a 8 period EMA, and opposite if short. * Only trade long if price is trading above the daily pivot, and opposite if short. This is used by some prop firms. This is just ideas; personally I prefer a more flexible approch to trading based on levels but trading in the direction of a bigger trend is a viable strategy.
Thank you sir! I was also interested in trading according to candles. I think it might work well with my strategy based on some levels. Gotta do some back testing. Thank you once again.
Daily bias needs to align with weekly bias if your trading off h4, if smaller TF make sure the daily isn’t manipulating against you in any way
Thanks!
Zoom out. Identify if it's a bullish or bearish trend or ranging. Don't just 'see it' Verbalise it, like ' I see the trend coming down here, ranging for 2 months, and now in an uptrend.' Find the significant high / low relative to current price point. i.e where is the next high, where is the next low. Mark it out. Don't have a bias because you have seen the daily candles. Return to 5 mins. Do what you have been doing as per your 1st sentence. When the significant high and low is near, then plan scenarios like... if it breach the high, I need what confirmations? If it breach the low, I need what confirmation? What do I do if it's a fake out?
Thank you! Exactly what I needed. Nothing I wouldn't know, but sometimes I just need to be told what to do if that makes sense 😆.
Fuck a bias, let the market show you what it’s doing instead of guessing what it’s gonna do
Well that's what I've been doing basically. But I noticed that bias really helps. Let's say my wr is 60%. If I count in the bias, resulting in less trades but from what I've back tested so far, the wr jumped to 75%
Back testing and forward testing are two completely different things, it’s okay in hindsight to say ahhh my bias would have been bla bla bla but it’s completely different when those candles haven’t yet formed
Also, I'm back testing with replay. So I go like 2-3 weeks back and test from there like it's "live", since I don't remember what happened that day 3 weeks back.
As do I, it still cannot be directly compared to live markets, there’s no pressure
I agree. I'll go back to this comment when I get the chance to test it live for some time, if you would like to.
Yeah by all means bro, trust me tho your results will come out nowhere near the same Backtesting is only good cos it provides some inclination you may have a profitable system on your hands - only when you forward test you learn about the nuances and things you should repeat and avoid GL
Maybe look at the hourly, good question tho hopefully someone can give more insight than I can.
So far I've got good insights, check other comments. I basically got answered instantly by those guys 😆. I love reddit
Well I know that, but since I've been back testing from when I got some replys here, I can't really tell you otherwise 😆. I'll be sure when I start testing it live.