have always prefer the two-hour
or hourly chart because it always helps to see what both the hourly
and 4H chart traders are up to. It is also the signal time frame for
the weekly, and 2-day charts swing traders. However, as a day trader,
I draw first the 2-hour
chart's key support, resistance and trend lines.
next thing that I am looking for is a high probability trading set-up
in the vicinity of one those key levels.
The 2-hour chart is my day trading set-up time frame.
Subsequently, I will take the trading signal on the fifteen-minute chart, but once I identify the signal, I will switch to the three-minute chart to enter the trade.
Practically, one can use either the regular double top or bottom chart pattern or the retest of a key level on the 2H chart for day trading set-ups.
More advanced day traders may combine the weekly and 2-hour chart to find reliable 2H chart day trading set-ups. In that instance, one is using a weekly chart trading signal on the 2-hour chart as the day trading set-up.
It is recommendable to traders to check our web page about the seven biggest trading mistakes so they may begin everything on a solid foundation without misusing this simple day trading strategy.
A common day trading mistake, one must overcome is the violation of the market patterns. If only, one can guard oneself from that critical trading error, one will start improving one's day trading strategy.
One can also look for the stochastic patterns directly on the 2-hour chart time frame (or on the weekly chart before switching to the 2-hour chart). Once one identifies a stochastic pattern, one will implement a different times frame trading strategy.
Another way one can day trade on the 2H chart will be to draw all the key support, resistance and trend lines on the weekly (instead of the 2H chart itself) before switching to the 2H chart. On the 2H chart, one is looking for trading set-ups in the vicinity those weekly chart key levels.