Monday, 13 December 2010

Longer Time Frame Trading

As I said in earlier posts, I do some longer term trading with pairs and options. The methodology I use is very similar to my day trading, except that I usually only need to look at the trades once a day.

Today's chart is an example from the Gold market. It's a daily chart, but if I had cut off the information that gave away the time frame, it could just as easily have been an intra day one.

I just keep it simple, add proper money management to a high win rate and it all comes together. Again, I need different bits of information in my picture and then the order flow tells it all. The Market Profile adds the context and in the longer daily time frames, it adds the "volume" component.

These longer time frames can be traded with futures out right, options, option spreads, ETFs and options on ETFs. We are spoiled for choice for instruments and can choose the one(s) that best suit our financial objectives.


  1. HI EL... say for these longer timeframe trades are you entering at the close of bar namely, end of day or are you entering intraday when price breaks below the prior day low (or above the high for longs)...?? Is your stop above the high of the prior bar when shorting? (below the low when going long)? DO you enter a stop in the market which exists throughout the 24hours or do you just watch it?


  2. EL, are there any indicators/cues/tells etc that are SPECIFIC to your higher timeframe trading ie things you WOULDNT use on your day trading setups? Are you looking at ever offering training on longer time frame trading?

  3. Hi bakrob99, Mostly entering bar close as a lot can happen during 24 hours. I trade the longer time frame as I don't have to look at it during my normal trading unless the flash crash comes again. Stops are market related and depend on whether I'm using the underlying or options. I have some really powerful option strategies where I can be out on my timing and still make money. Market tells me when I'm wrong, not just a price move.

    spibok, it's the same as the intra day - the whole picture and context is what I look at and place different emphasis depending on that. There seems to be more people wanting help with longer time frames. If that continues, I'll do something in the new year. Interest rates are so low that no one can retire unless they can catch up by earning more.