As mentioned above, "should be used and combined with the periods you feel more comfortable," while the truth is that it also can provide some important points to take the best operational measure of this by combining different time periods.
As a general rule, consider that during the period between 1 hour and daily chart and that short period between 15 and 5 minutes. For practical reasons we will not consider the period of 30 minutes. Furthermore, only for this session, we will focus on combinations that take intraday periods / term reference.
The basic rule would be (the example graph will clearly show what is expressed here in words) the setting up the work of trading, the so-called long period, e.g., choose 60 minutes (suppose to make a purchase) then watch the short period, e.g. 5 minutes, to find the optimum point to make this purchase. To this end, we assume that the 5 minutes chart is pointing in the same direction as that of 60 minutes, thereby giving the transaction a "plus" for the moment that allows us to optimize the point of entry, in turn, significantly improve the level of risk versus benefit.
The longer the period chosen to raise the scenario of trading, is more reliable. BUT, eye, is also more difficult to find or optimize entry points when combined with the short time since, for example, a daily chart is very difficult to be replicated (in time) by the graphics of 10-15 minutes. 1 sailing daily is 10 minutes of 154 candles and 96 candles for 15 minutes. This is a differential / temporal gap at too great, you can easily see a change to bullish or bearish on the graph back to 10/15m without for anything that affects the daily candle. The differential / gap are too big here and this combination should therefore be discarded (after we have a complete grasp of this way of operating). Basically should take account of those combinations that have at best a temporary, i.e. 60 & 10 / 5 minutes, or 4hr & 15m. The relationship between 60 & 15m has the disadvantage that the differential is too small (only 4 times), to be considered valid. The optimal temporal relationship is between 10 and 24 times the length of the short connection.
For practical purposes, this meeting for me to follow any combination may also be available from the Council's graphic 60minutos as the long period.
Combining does not mean mixing (a common error)
Indeed. There is an important factor that most beginners should face when trying to implement this method of trading. At some point during the operation (already open), the short (more nervous) moves in a direction opposite the period. Then the trader loses his way and only concentrates on each pip the price moves against him, thinking that this is the price to be implemented this "nonsense" method. Suddenly, the closed position, they forget the long period and are concentrated only in the short period since then is that it is working, so adopt a contrary position to the original. A little later, oh! Surprise, the price is no longer continues in EAS "new" direction and returns the starting address, which our brave trader has already left. Closed position, and is preparing to resume after the address, but are not sure the price is far worse compared to the original that he had taken, not feeling comfortable, he decided to take a breather and wait for a pullback that never comes, and com keeps looking and or the price will be... In the direction he had anticipated correctly.
It may sound like a children's story, but the reality of many traders on a daily basis. These traders do not use the combination of periods of time consciously, but the fact is that use, but not for their own beneficiary, in many cases by the eagerness of some operation, the mere fact of "being in the market. Let's see what you think this example: the 60-minute chart, a trader buys EUR / USD @ 1.2045. In that the operation is not in the expected direction, and this being a boring days with little movement, decided to look at other temporary sites, to see "if you see" something interesting. Indeed, the graph shows a clear 10 minutes! Sale opportunity! For that par ... "My God!" He complains our trader. Immediately closed and open position venta@1.2039, considering he missed (a little) and make some pips profit. The day is still boring, and the price barely moves. Suddenly, the pair until the 1.2050 comes in what looks like a breakdown of boredom. Our trader does not give importance, and thinks that will recover, because the graph of 10 minutes remains a good look and think that some thing has been "great" playing a little bit. 15 minute later, his jump stop (fortunately there was a stop) @ 1.2070. Stunned, does not react and think about buying "when a little back." After 20 minutes the price marks 1.2115. Do you have children? I do not think so, but I would say that is precisely the harsh reality on many occasions.
Should not be mixed (with feelings and opinions) the different periods to be followed but should be combined. Use the short period to optimize the point of entry in the trading scenario that arises during the period, but not to go against it.
