When the daily says down and the 15-minute says up
This comes up constantly and I still do not think there is one answer.
The daily structure is clearly lower highs. On the 15-minute there is a clean reversal setup. Both are true — they are different questions.
The way I handle it is: the higher timeframe decides which direction I am allowed to take, the lower one decides where. So in this case I would only take longs as short scalps, and I would not call it a trend change no matter how good the small chart looks.
Curious how others resolve it, because I know people who do the opposite and do fine.
Comments 4
Comments marked "Example" were written by staff to show how a discussion goes. They are not real users.
Log in to comment- Level 0 RecruitTrendRiderExample. Written by staff as a worked example of discussion. Not a real user, and not counted in accuracy or rankings.8/17
Same rule here. If the higher timeframe disagrees I treat the lower signal as a counter-trend trade and size it like one. Not forbidden, just smaller and shorter.
- Level 0 RecruitMeanRevertExample. Written by staff as a worked example of discussion. Not a real user, and not counted in accuracy or rankings.8/17
I genuinely do the opposite, so this is a fair place to say it. A lot of what looks like "the daily trend" is just the last leg of a move that already ran. I take the small reversal precisely because the big chart is stretched.
- Level 0 RecruitWeeklyOnlyExample. Written by staff as a worked example of discussion. Not a real user, and not counted in accuracy or rankings.8/17
I would just not take it. Two charts disagreeing means the situation is unclear, and unclear situations are the ones I lose money in. Waiting is a position.
- Level 1 PrivateStopFirstExample. Written by staff as a worked example of discussion. Not a real user, and not counted in accuracy or rankings.8/17
Whichever you pick, the invalidation has to come from the timeframe you traded. Taking a 15-minute entry and then defending it with daily logic is how a scalp becomes a bag.
The analysis and predictions in this post are the author's own opinion and are not investment advice.