Big Mike's Trading Blog

Day trading futures, discussing money management and trade management techniques, and more

Importance of having multiple time frames/charts

In this video I talk about why I believe it is crucially important to have more than just one time frame up on your chart. There are several types of charts: minute, range, tick, volume, renko --- use them to your advantage! Each has a unique benefit, so combine the right kinds of charts together, and the right time frames (length), to give you a complete picture!






Download HD full-screen MP4 video


Mike

3 comments:

michaelpub@gmail.com said...

Nice video. It's good to see what you're thinking this week. :)

I have a few suggestions:

I'm not sure but it seems like you're not really analyzing Volume. I think Volume is pretty important. EOT's volume splitter seems like one of their more interesting videos (for me at least, I love volume). I'm curious if you've tried it and why you're not using it.

Second, have you written your trading rules down? I think that'd be helpful for you because you were a bit wishy-washy. "that's one I couldn't have taken but I didn't but I could've" etc. After you write your rules down the next step is to back test them by hand over the past few weeks and see what that gives.

I'd love to see the results so let me know what you think. This has been very beneficial to me.

Big Mike said...

Hi Michael,

I've tried some VSA and have also looked at EOT's Volume Splitter. They did not benefit my trading one way or the other, although the EOT Volume Splitter is interesting to look at.

I have in fact written my rules, but you are absolutely correct, I was wavering in my absoluteness... lol. Following my rules is the hardest part of my trading, and I suspect that to be true of most everyone. My rules allow for a little interpretation here and there. If I miss a trade, I am fine with that. So if I take a trade that winds up being a loser, I will analyze it closely. If I skip a trade that was a winner, I am not too worried, so long as I don't skip them all. :)

Mike

cunparis said...

I agree that following them is very difficult. I have kept very detailed records for the past 2 weeks. Very detailed. Trading in hindsight with my rules made 2x as much money as I did in reality. Now I know I will probably never get the same results real time as in hindsight, I'd expect them to be close. So I decided that my goal is no longer to beat the rules (which is in fact what I was doing by choosing not to follow them), my goal is now to do equal to the rules.

Friday was my first day and there were several points were I was up 2 pts on ES and knew it was going to come back and I would have exited. Two of those price went back and I exited at zero (per my rules). That surprisingly didn't bother me. Cause I had logged everything in excel and I knew I was following my rules. My goal was following my rules, NOT to make money. We'll see what happens this week.

This could make for an interesting forum discussion. May I also suggest that you remove comments from the blog and make a forum post for each blog entry and direct people there? It'd be much more interactive.

Thanks for the good work mike. Always something to think about.

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