How do you choose the best time frame for momentum indicators? (2024)

In my experience we should check 15m , 30m, and 1 Hr chart before making a strong decision in options.Many I have regretted after jumping in a trade with 15 m charts and later finding 30m indicating the opposite signal.

I use 3min TF on the price chart on which I trade. I take decisions on whether upside/downside trend from 5mins TF on the chart with Heikin Ashi candle stick pattern which filter out the noises and strictly follow my strategy of 9ema. If price falls below 9ema, I will short it, if it is moving abv 9ema, I prepare to buy on 3min TF chart for a predefined target.

I may put in different words here. If you want to know the overall trend or direction of price movement, keep 5min TF on the price chart with Indicators supporting it or for your ref. Don't disturb it.Open the same chart with 3min TF to take a trade with your fav technical indicator on which you firmly believe on, to follow and take a trade with a pre-defined target level to exit.

I completely agree. One more good leading indicator which is missed out here, which is StochasticsRSI. It's a good one to trust, in conjunction with Relative Vigor Index(10) which is absolutely smooth, incorporating volume. I started avoiding MACD & RSI which had been tested and worked for many in the past, present days. I have chosen something which works with me better.

No. Don't change the TF when you set on the Price chart along with its Indicator you have taken it for reference. It's like a SOP (Std Operating Procedure) for often looking at the direction on which price intend to move ( ofcourse, we all look forward for predicted move or leading signal provider). If you change the price chart TF quite often, Indicator would show totally difft perspective as it simply works with mathematical calculation only.And to some extend, It is true to avoid too many indicators for taking as reference. Just have 2 confirmation pointers for the price level on the chart in which direction it is heading on, to take a trade. That's it.

It is true. I totally agree. Trend lines improve us to even find a clear exit points when we take a trade. i.e Entry & Exit levels.

The fourth factor to consider is the asset class and instrument type that you are trading. Different assets and instruments have different volatility, liquidity, and trading hours, which can affect the optimal time frame for momentum indicators. For example, forex pairs may have more volatile and frequent price movements than stocks, and commodities may have seasonal or fundamental factors that influence their momentum. Similarly, options and futures may have expiry dates or contract specifications that require a specific time frame for trading. Therefore, you should choose a time frame that suits the characteristics of the asset and instrument you are trading and avoid using a one-size-fits-all approach.

Tip 3: Keep an eye on economic eventsIt is important to keep an eye on economic events and news releases that can affect the market and the momentum of the price. These events can cause sudden spikes or drops in price, and can also affect the sentiment and direction of the market. Therefore, you should be aware of the economic calendar and avoid trading during high-impact events or use tighter stop losses and risk management strategies. Additionally, you can use momentum indicators that are specifically designed to capture news-driven momentum, such as the Chaikin Volatility Indicator or the Average Directional Index (ADX).

Check out Hoffman Financial Storm Chaser Newsletter Article on LinkedIn that Describes a unified approach for: capturing Momentum Trends, Extreme Reversion Events; andlevering Momentum Crashes for competitive advantage, with Momentum Perception Maps and Crowd Physics.Here is the link:https://www.linkedin.com/posts/efremhoffman_preciousmetals-goldmining-juniormining-activity-7042176554424045568-AE_R?utm_source=share&utm_medium=member_android