🔶 Choosing the Right Timeframe
One of the most common questions from new traders is “what timeframe?” For active trading, it’s crucial to understand timeframe alignment: setting your bias with a higher timeframe (HTF) and executing on a lower timeframe (LTF).
🔶 Understanding HTF vs. LTF
HTF provides context and sets your bias; LTF is where you execute your trade. For example, H1 can be HTF, and 5m can be LTF. Common alignments:
Weekly -> H4
Daily -> H1
H4 -> 15m
H1 -> 5m
🔶 Focus on Setup Quality Over Price Levels
Avoid focusing solely on predicting the next big move. Instead, prioritize setups with a favorable Risk:Reward (R) ratio. Trading is about extracting R from the market, regardless of price.
🔶 Trader vs. Investor Mindset
Know when to switch between trader and investor mindsets. An investor thinks long-term, while a trader focuses on short-term setup quality.
Example: Just marked up an LTF setup after dinner and found a 3R opportunity—potentially enough for the week. GL!
