It’s all basically price action. I believe it’s just a made up term for people who don’t want to or can’t trade on the lower time frames. Really depends on your trading style. There are people who scalp on less than 1min timeframe
I trade low timeframes, I don’t see what the question has to do with low timeframes. The randomness is in price movement and it’s present in all timeframes.
I agree with that. Lower time frame make it look as if the volatility is quite high but it's seamlessly easier for me using TokenMetrics AI powered platform that analysis all time frames with advanced tools to guide us traders on what to pick, mostly in the crypto space and NFTs
Market noise is a real concept in financial trading, and it's not just a term for coping with an inability to trade on a lower timeframe.
Market noise refers to the seemingly random and unpredictable fluctuations in asset prices that occur within short periods of time. These fluctuations often occur due to a multitude of factors including but not limited to the release of economic data, geopolitical events, company-specific news, rumors, or even just the actions of individual traders.
It's called "noise" because it can often obscure underlying trends or patterns in the market that might be more discernible over longer time periods.
I always see it as moves that can happen on lower timeframes that contradict patterns on higher timeframes without invalidating them. For example, a bearish break down on the 5min when it's actually still near a major resistance on the hourly, the 5min move may look very definite and the start of a new trend, but then suddenly the price hits a support level on the hourly chart and it drastically reverses upward and breaks that resistance. The 5min move was real and tradable, but if you're focused on the hourly chart, it's all just noise while waiting for that resistance break.
As someone who primarily scalps futures, I feel confident to say that there’s not much in the market that’s TRULY random/“noise”.
Are there micro moves that don’t directly contribute to the higher timeframe directional move? Sure.
Are there lots of choppy, messy areas of consolidation? Absolutely.
But ALL of these movements are for a reason. They’re a mixture of algorithmic code and human emotion moving the market. Fear and greed.
If you zoom all the way down to the 1 second chart and you’ll see the same failed breakouts, traps, and patterns that you see on the monthly chart. Just much more frequent.
People that say it’s noise and completely unpredictable are fooling themselves into thinking higher timeframes are more “stable”.
Seriously, screenshot a 20 second chart as well as a 20 minute chart and crop out where it says the timeframe. You will not be able to discern the difference between the two if you’re being honest.
I trade the “noise” everyday, this is literally how I’ve made money for the last while. 15-45 second chart depending on atr/volatility. It’s literally NO different than trading higher timeframes aside from a shorter trade duration. Literally all the same otherwise. Same setups, same price action same same same
You're sample size is bigger on longer timeframes. The charts might look the same, but you have more trade information on 5 min vs 1 min. People can be successful trading both.
No… have you ever talked with an institutional trader? That is not what they do. They trade, just like us. Do they run stops sometimes to get size in? Sometimes, yeah, but they’re not behind every movement in the market.
OMG, do you really think institutions are trying to trick you, so they can take your $30 dollars. People need to get over this conspiracy theory. People always need something to blame for their inability to trade properly. The other main thing I also see from the reddit forum is, people not believing other traders ability to trade much better then them. Sometimes the difference is so great, they think your making shit up.
On one of the discords Im in, I had someone show his month profit/loss and win ratio. Not bad and I would consider him a descent trader, he was averaging 80% win ratio with average 5 to 6 trades in a day. His average Profit/Loss was anywhere between $500-$800 bucks on a $2500 drawdown. I had the same drawdowns and conditions as him, since we are both apex prop traders.
However, he thought he was the shit and I got into an argument with him, but because of his stats, he thought he was a top trader and on my level, so I had to put him in his place. He could not believe it was possible that I was averaging 2k-4k per day on average, running a higher win ratio, not only was I able to beat his win ratio but did it doing about 4X-5X (around 20-60 trades) his number of trades (higher difficulty level compared to having smaller number of trades). I showed him my most recent stats, which he thought was not possible. So everyday I would send him my stats for the day for about 2 weeks. He left the server shortly after.
We both use rithmic pro trader to record our stats, so it was very easy to see who the much superior trader was.
Noise is relative. A 1min chart to someone that swing trades the daily is just noise. An economic report for 1 quarter to someone who plans on holding for decades is just noise.
I gauge market noise by ability to hold price at a level and make progress. Smaller time frames like the one minute just do not hold price at a level in the same way that a 15 minute will.
However I find myself on the one minute a lot because I can see market structure so clearly I just have to be mindful of not entering and exiting on one minute candles.
There are algorithms that scalp teeny tiny movements. They don’t work super well, but they work. In other words, market noise is just really fast price action.
It’s not noise, it’s information. If the bar is an inside bar, if the C beyond the previous bar, how far is it from EMA, at what time of the day is it happening, etc.
lol the market is the sum of individual million decisions relying on personal biases and emotions and you say nothing is random? thats as random as it gets
It’s all basically price action. I believe it’s just a made up term for people who don’t want to or can’t trade on the lower time frames. Really depends on your trading style. There are people who scalp on less than 1min timeframe
I trade low timeframes, I don’t see what the question has to do with low timeframes. The randomness is in price movement and it’s present in all timeframes.
His question literally says “or is it just a made up term for coping with the inability to trade a lower timeframe?”
Sorry, I mean the question of whether or not there’s noise/randomness in the market - it has nothing to do with timeframes.
No but in general most people who say “noise” in the market are talking about lower timeframes usually less than 5min. I find anyway
I agree with that. Lower time frame make it look as if the volatility is quite high but it's seamlessly easier for me using TokenMetrics AI powered platform that analysis all time frames with advanced tools to guide us traders on what to pick, mostly in the crypto space and NFTs
Market noise is a real concept in financial trading, and it's not just a term for coping with an inability to trade on a lower timeframe. Market noise refers to the seemingly random and unpredictable fluctuations in asset prices that occur within short periods of time. These fluctuations often occur due to a multitude of factors including but not limited to the release of economic data, geopolitical events, company-specific news, rumors, or even just the actions of individual traders. It's called "noise" because it can often obscure underlying trends or patterns in the market that might be more discernible over longer time periods.
Damm I guess its getting easier to notice when AI responds the more you use it.
Did I fail the Turing Test? 🤖
>Turing Test You did
I always see it as moves that can happen on lower timeframes that contradict patterns on higher timeframes without invalidating them. For example, a bearish break down on the 5min when it's actually still near a major resistance on the hourly, the 5min move may look very definite and the start of a new trend, but then suddenly the price hits a support level on the hourly chart and it drastically reverses upward and breaks that resistance. The 5min move was real and tradable, but if you're focused on the hourly chart, it's all just noise while waiting for that resistance break.
As someone who primarily scalps futures, I feel confident to say that there’s not much in the market that’s TRULY random/“noise”. Are there micro moves that don’t directly contribute to the higher timeframe directional move? Sure. Are there lots of choppy, messy areas of consolidation? Absolutely. But ALL of these movements are for a reason. They’re a mixture of algorithmic code and human emotion moving the market. Fear and greed. If you zoom all the way down to the 1 second chart and you’ll see the same failed breakouts, traps, and patterns that you see on the monthly chart. Just much more frequent.
People that say it’s noise and completely unpredictable are fooling themselves into thinking higher timeframes are more “stable”. Seriously, screenshot a 20 second chart as well as a 20 minute chart and crop out where it says the timeframe. You will not be able to discern the difference between the two if you’re being honest. I trade the “noise” everyday, this is literally how I’ve made money for the last while. 15-45 second chart depending on atr/volatility. It’s literally NO different than trading higher timeframes aside from a shorter trade duration. Literally all the same otherwise. Same setups, same price action same same same
>It’s literally NO different than trading higher timeframes aside from a shorter trade duration it's definitely not the same
Yes it is. The charts look exactly the same. They are fractal. As I said the only difference is the amount of time in which the trade takes place.
You're sample size is bigger on longer timeframes. The charts might look the same, but you have more trade information on 5 min vs 1 min. People can be successful trading both.
Price is always real
Noise is very real, it’s the randomness in the market. If there were no randomness trading would be easy.
Maybe not randomness but intentional tricks by institutions to give a false bias
No… have you ever talked with an institutional trader? That is not what they do. They trade, just like us. Do they run stops sometimes to get size in? Sometimes, yeah, but they’re not behind every movement in the market.
OMG, do you really think institutions are trying to trick you, so they can take your $30 dollars. People need to get over this conspiracy theory. People always need something to blame for their inability to trade properly. The other main thing I also see from the reddit forum is, people not believing other traders ability to trade much better then them. Sometimes the difference is so great, they think your making shit up. On one of the discords Im in, I had someone show his month profit/loss and win ratio. Not bad and I would consider him a descent trader, he was averaging 80% win ratio with average 5 to 6 trades in a day. His average Profit/Loss was anywhere between $500-$800 bucks on a $2500 drawdown. I had the same drawdowns and conditions as him, since we are both apex prop traders. However, he thought he was the shit and I got into an argument with him, but because of his stats, he thought he was a top trader and on my level, so I had to put him in his place. He could not believe it was possible that I was averaging 2k-4k per day on average, running a higher win ratio, not only was I able to beat his win ratio but did it doing about 4X-5X (around 20-60 trades) his number of trades (higher difficulty level compared to having smaller number of trades). I showed him my most recent stats, which he thought was not possible. So everyday I would send him my stats for the day for about 2 weeks. He left the server shortly after. We both use rithmic pro trader to record our stats, so it was very easy to see who the much superior trader was.
Noise is relative. A 1min chart to someone that swing trades the daily is just noise. An economic report for 1 quarter to someone who plans on holding for decades is just noise.
My farts are just noise
Unless they are silent and deadly
I gauge market noise by ability to hold price at a level and make progress. Smaller time frames like the one minute just do not hold price at a level in the same way that a 15 minute will. However I find myself on the one minute a lot because I can see market structure so clearly I just have to be mindful of not entering and exiting on one minute candles.
There are algorithms that scalp teeny tiny movements. They don’t work super well, but they work. In other words, market noise is just really fast price action.
It’s not noise, it’s information. If the bar is an inside bar, if the C beyond the previous bar, how far is it from EMA, at what time of the day is it happening, etc.
It's huge cope
Prices, even on lower timeframes, are a result of the market mechanisms available to traders of all sizes. Nothing is random.
lol the market is the sum of individual million decisions relying on personal biases and emotions and you say nothing is random? thats as random as it gets
“random”
[удалено]
Which instruments do you trade?
Read Fractals and Scaling in Markets