Libertarian wrote:What I don't get about this is, why is it easier to trade the higher TF than the lower one. Isn't a chart a chart? Is it because were still trading the weekly from a smaller chart and therefore we get a lot more cracks at getting the move? I know i'm missing something about this idea.
"Isn't a chart a chart?"
Yes & no...so no
Let's set up a few cameras: CAM1 takes a picture of your life every 10 minutes, CAM2 Takes a picture every month, and CAM3 takes a picture every 7 years.
Is a picture of Libby's progress a picture of Libby's progress no matter which camera we are looking at?
Yes, but a picture of his current state without knowledge of the journey is an incomplete picture & a picture of the journey tells us little about Libby's current state:
eg "we are heading to Libby's cabin; it is a beautiful place, but the last time he was there he got bit by a spider and almost lost his leg"
Does CAM3 contain information that is relevant to the short-term trip?
"Why is it easier to trade a higher TF than the lower one?"
You might draw a trend-line on a small chart but a single bar on a large chart is itself the uptrend: so even though the charts look the same between periods they carry different meanings.
Relying on a small chart is like looking at a child picking up after herself: is she possessed by an angel or is she going to ask me for something; I'm not going to know what it means without considering more history.
When you combine wider lines with bars that are trends then you have a higher probabilty of price moving in a particular direction after the trigger is hit as there can only be 1 lowest low and the larger the chart the more likely it is that red candles will remain red.
Larger charts also allow you to micromanage your trades: if the H1 width is 5.3 pips then that makes the MN lines 84.8 pips wide and that means that if we come to the conclusion, within 21.2 pips, that the trade is not going to move in our favor then we have only lost a quarter of a line: this means that you can be more aggressive on weekly/monthly charts.