Using Intraday Charts to Confirm Daily Signals Also, notice there was a larger 4-hour pin bar that formed the same day as the daily signal, adding more confluence to that daily signal. Notice, in the chart below, we see a fakey pin bar combo pattern formed shortly after the daily pin bar. However, for savvy price action traders, they know a second-chance entry will often present itself on the intraday charts not long after the daily signal fires off. If you missed this one, you were definitely kicking yourself… In the example below, we see a clear-as-day pin bar buy signal from support in the S&P500, circled in the chart below. One of those ways is by use of the 1-hour or 4-hour charts to look for a signal a few hours or even days later, to re-enter in the direction of the original daily chart signal that you missed.
Luckily, there are a number of different ways you can get a good second chance trade entry on a signal you initially missed. Using Intraday Charts for Second Chance Trade EntriesĮveryone hates missing out on a perfectly good trade, myself included. Remember, the initial trade trigger is still the higher time frame chart.
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Remember, this is NOT day trading! The length of time we are holding these trades is still intended to be a full overnight position or multiple days / weeks.It’s just something you might want to implement as you become more advanced and have mastered the basics of trading daily chart time frames. Remember, it is NOT essential to trade the daily chart with confirmation from the intraday.It should be noted, I rarely trade off weekly charts alone, but for the die-hard weekly-chart traders, keep this in mind when reading the rest of this tutorial. You would essentially use the daily charts to confirm weekly signals and add confluence to them, as well as fine-tune your risk management. For those who like to look at weekly charts, the concepts in this lesson could be applied there as well.The anchor chart that I base most of my trading decisions on is always the daily chart time frame. I only look at the 1-hour and 4-hour charts when I am looking at intraday time frames.As you go lower in time frame, there are increasing amounts of meaningless price bars that you have to sift through and this makes the story of the market cloudier and cloudier, until you reach a 1-minute chart where you are basically just trying to make sense of gibberish. The most important thing to remember is that I never go lower than the 1-hour chart because from my experience, any time frame under the 1-hour is just noise.
The other big advantage of the intraday charts is that they can allow me to fine-tune my entry to achieve better risk management. In this way, the intraday charts work as an extra point of confluence to give weight to a trade and further confirm whether or not I want to enter it. However, 90% of the time I use the 1-hour and 4-hour charts to confirm the higher time frame signal, mainly the daily chart time frame. The answer is, yes, I sometimes do trade the 1-hour or 4-hour charts on their own without taking into account the daily or weekly time frame. Typically, people who email me about the intraday time frames want to know if I ever trade solely off of these lower time frames.
My favorite intraday chart time frames to trade… This tutorial will demonstrate several of the core ways I use intraday chart time frames to provide additional confirmation to daily chart signals as well as manage risk, manage position size and improve the risk reward of a trade. This is something I go into much greater detail on in my advanced price action trading course, but for today’s lesson, I wanted to give you a brief overview of just how I incorporate intraday charts into my daily trading routine.
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It’s important you understand when to use them and how to use them. However, (you knew there was going to be a however, right?) there is a time and place for everything, especially intraday charts. A common question beginning traders ask me is whether or not I use intraday or “lower time frame charts” and if so, how do I use them?įor the most part, the answer is yes, I do use intraday charts.
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