imeframe selection. This decision is fundamental to avoiding market noise, aligning with institutional flows, and maintaining the psychological discipline necessary for consistent profitability. We exclusively take trades based on daily, weekly, or monthly charts. This deliberate focus on higher timeframes is not arbitrary; it’s a strategic choice driven by several key advantages that are “obvious for the professionals”:
22. Daily, Weekly or Monthly Timeframes Only
When it comes to analyzing market conditions and making trading decisions, choosing the right timeframe for your charts (daily, weekly, or monthly) is crucial. Each timeframe offers a unique perspective on price action and suits different trading styles and objectives. While shorter timeframes (like minutes or hours) are popular for day trading and scalping, daily, weekly, and monthly charts are favored for their ability to provide a clearer, less noisy view of the market.
Here’s a look at why you might focus on these higher timeframes:
Daily Timeframe (D1)
The daily chart represents one day of trading activity per candlestick.
Pros:
Clarity of Trend: Daily charts significantly filter out intraday “noise” and provide a much clearer picture of short-to-medium term trends. This makes it easier to identify the true direction of the market.
Reliable Signals: Candlestick patterns, support/resistance levels, and indicator signals tend to be more robust and reliable on the daily chart compared to shorter timeframes, leading to fewer false breakouts.
Big Player Activity: The activity of institutional traders (hedge funds, mutual funds) is often more visible on daily charts, as their large positions influence longer-term price movements.
Reduced Stress & Overtrading: Trading off daily charts requires less constant monitoring than intraday charts, reducing stress and the temptation to overtrade based on fleeting price fluctuations.
Suitable for Swing Trading: Many swing traders, who hold positions for a few days to several weeks, find the daily chart ideal for identifying entry and exit points.
Weekly Timeframe (W1)
The weekly chart represents one week of trading activity per candlestick.
Pros:
Strongest Trends: Weekly charts provide an even broader view of the market, revealing the most significant and durable long-term trends and cycles. They are excellent for understanding the “big picture” of market direction.
Minimal Noise: Market noise is greatly reduced, offering exceptionally clean price action and making it easier to spot major turning points or trend continuations.
Highly Reliable Levels: Support and resistance levels identified on weekly charts are typically very strong and respected by the market.
Ideal for Position Trading: This timeframe is often used by position traders and investors who hold trades for weeks or months, focusing on capturing large moves.
Least Time-Consuming: Requires minimal monitoring, often just once or twice a week, making it suitable for part-time traders or those with other commitments.
Monthly Timeframe (MN)
The monthly chart represents one month of trading activity per candlestick.
Pros:
Long-Term Market Structure: Provides the ultimate “macro” view of an asset’s price history, showing primary trends, major historical support/resistance zones, and long-term cycles.
Lowest Noise: Virtually free of market noise, offering the purest perspective on the asset’s trajectory over years.
Used by Long-Term Investors: Primarily utilized by long-term investors or very long-term position traders for strategic asset allocation and identifying multi-year trends.
Multiple Timeframe Analysis
Many professional traders don’t exclusively use just one. Instead, they employ multiple timeframe analysis. This involves:
Defining the main trend on a higher timeframe (e.g., weekly or monthly).
Identifying setups/levels on an intermediate timeframe (e.g., daily).
Refining entry and exit points on a lower timeframe (e.g., 4-hour or 1-hour).
This approach provides a comprehensive view, aligning shorter-term actions with the broader, more reliable trend, and filtering out less significant “noise.” The best timeframe for you ultimately depends on your trading style, time commitment, and risk tolerance.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
Focusing solely on daily, weekly, or monthly timeframes in trading offers distinct advantages for professional traders, aligning with principles of robust analysis, risk management, and psychological discipline. This strategic choice is driven by several key factors:
Reduced Market Noise and Enhanced Clarity: Higher timeframes (daily, weekly, monthly) inherently filter out the fleeting, often erratic price fluctuations that characterize shorter intraday charts. This reduction in “noise” allows traders to discern the true underlying trend and significant price patterns with greater clarity, minimizing the likelihood of misinterpreting minor oscillations as major shifts.
Increased Reliability of Technical Signals: Candlestick patterns, chart formations, and technical indicator signals tend to be more robust and reliable when observed on longer timeframes. A breakout or reversal confirmed on a daily or weekly chart carries more weight and conviction than one seen on a 5-minute chart, leading to fewer false signals and a higher probability of the anticipated price action unfolding.
Facilitation of Trend Identification and Confirmation: These timeframes are superior for identifying and confirming the primary and secondary trends of a market. Long-term trends, which offer the most substantial profit potential, are best understood by stepping back and viewing price action over extended periods, providing context that shorter timeframes cannot.
Optimized Risk-Reward Management: While entries may not be as precise as on very short timeframes, the larger price movements characteristic of higher timeframes allow for wider, more structurally sound stop-loss placements. This enables traders to pursue larger profit targets, often resulting in more favorable risk-reward ratios per trade. Furthermore, fewer trades mean lower transaction costs relative to potential gains.
Cultivation of Trading Discipline and Reduced Emotional Impact: Trading on daily, weekly, or monthly charts inherently demands and fosters patience. Fewer, higher-quality setups translate to less frequent decision-making, which in turn mitigates the influence of emotions such as fear of missing out (FOMO) or impatience. This methodical approach helps to prevent overtrading and impulsive actions, promoting a calmer, more objective trading psychology.
Compatibility with Broader Trading Styles: These timeframes are particularly well-suited for swing trading (holding positions for days to weeks) and position trading (holding for weeks to months or even longer). They allow traders to align their strategies with fundamental analysis and macroeconomic themes, capturing larger price movements that reflect significant shifts in market sentiment or value.
In essence, focusing on daily, weekly, or monthly timeframes enables traders to operate with a higher degree of analytical precision and strategic foresight, minimizing reactivity to short-term fluctuations and optimizing for more sustained, high-conviction trading opportunities.
💰Quotes:
“Enter the trade — then sit on your hands like a monk!”
“We don’t click and panic. We click and chill.”
“Traders who wait, get paid. Traders who fidget… donate!”
“We enter the trade, then do absolutely nothing like pros.”
“Let the market work. You’re not its boss.”
💰Normal Tone Slogans:
“Enter with a plan, then let the trade play out.”
“The work is in the setup — the result comes with patience.”
“We don’t babysit trades. We trust our edge.”
“Entry is action. Waiting is discipline.”
“After entry, emotion has no place — only patience.”
🔹
1. Filtering Out Market Noise (The Signal is Clearer):
Lower Timeframe Chaos: Intraday charts (minutes, hours) are notoriously volatile and filled with “noise”—random price fluctuations that don’t signify any real shift in market sentiment. These smaller timeframes generate countless false signals, leading to overtrading, increased transaction costs, and emotional fatigue.
Higher Timeframe Clarity: Each candle on a daily, weekly, or monthly chart encapsulates a significant amount of trading activity and volume. This effectively filters out the short-term distractions, revealing the underlying, more reliable trends and patterns. A long wick on a daily chart, for instance, represents a much more significant rejection than a long wick on a 5-minute chart.
🔹
2. Aligning with Institutional Flow (Following the “Smart Money”):
Large institutions (hedge funds, banks, pension funds) typically operate on higher timeframes. Their massive orders cannot be entered or exited quickly without moving the market significantly. Therefore, their strategies unfold over days, weeks, or even months.
By focusing on daily, weekly, and monthly charts, we are essentially “following the money.” The dominant trends and key structural levels identified on these timeframes are often driven by the positions of these major players, making our trades more likely to align with sustained directional moves.
🔹
3. Reduced Stress and Emotional Control:
Trading on higher timeframes means fewer trading opportunities, but those opportunities are typically of much higher quality. This eliminates the pressure to constantly monitor charts and make rapid-fire decisions, which is a major source of stress and emotional errors for retail traders.
We have ample time to analyze closed candlesticks, confirm confluence with our 8-period and 23-period EMAs, assess risk/reward, and meticulously plan our entries and exits. This calmer approach significantly improves decision-making and helps maintain psychological composure.
🔹
4. Better Risk/Reward Opportunities:
While trades on higher timeframes may require wider stop losses in terms of pips, they also offer substantially larger take profit targets. This allows for superior risk/reward ratios (e.g., 1:2, 1:3, or higher) which are crucial for long-term profitability, even if the win rate isn’t exceptionally high.
The movements captured on daily, weekly, or monthly charts represent more significant price swings, leading to potentially larger profits per successful trade.
🔹
5. Lower Transaction Costs (Fewer Trades, More Impact):
Trading less frequently inherently means lower cumulative transaction costs (commissions, spreads, slippage). For many retail traders, excessive transaction costs on lower timeframes can significantly erode potential profits, even if their win rate is positive.
🔹
6. Robustness of Signals and Patterns:
Key price action patterns (Pin Bars, Engulfing Bars, False Breaks, Hikkake, Inside Bars) are far more reliable when they form on higher timeframes. The conviction behind these patterns is stronger because they represent the collective action of more traders and more significant volume over a longer period.
By strictly adhering to trading only on daily, weekly, or monthly charts, we adopt a swing trading or positional trading style that prioritizes quality over quantity, aligns with the dominant market forces, and supports the psychological resilience necessary to be among the successful professional traders. This choice is integral to filtering for the “easiest setups” that offer the highest probability of success.
🔧 Tips for Effective Pin Bar Trading
Trade with trend for higher probability.
Use with support/resistance, Fibonacci, or moving averages.
Avoid trading pin bars in choppy or low-volume conditions.
Look for strong rejection candles with good context — not just any long wick.
🕰️ We Only Trade Daily, Weekly, or Monthly Timeframes
🧠 Why?
✅ Cleaner Signals
No noise. No distractions. Just pure structure.
✅ Stronger Levels
Key support/resistance on higher timeframes are respected by institutions.
✅ Better Risk/Reward
Bigger swings = bigger potential profits.
✅ More Time, Less Stress
You don’t need to stare at charts all day.
🔒 Our Rule:
“If it’s not on the daily, weekly, or monthly — we don’t trade it.”
Entry With RSI
Here’s a simplified and focused guide on how to filter the market for the easiest trading setups – ideal if you want clarity and fewer distractions.
✅ How to Filter Markets for the Easiest Setups
1. Stick to Trending Markets
Only trade in the direction of the trend.
Avoid sideways and messy price action.
Use EMAs (like 8 & 23) to guide the trend.
✅ If price is above both EMAs and EMAs are pointing up → look for buys only.
2. Focus on Clean Price Action
Look for:
Smooth swing highs & lows
Big impulsive candles, not wicks
Clear pullbacks (not choppy)
✅ Clean charts = easier setups.
3. Use Key Levels Only
Trade setups that occur at:
Support/Resistance
Previous highs/lows
Round numbers
Gap or event areas
✅ Price reacts at key levels. No level = no trade.
4. Filter with Confluence
Only take a trade when you have at least 2–3 confluences, like:
Trend + support level + bullish pin bar
Downtrend + 50% retrace + false break
✅ More confluence = higher probability = easier decision.
5. Choose High-Quality Candlestick Signals
Look for:
Pin bars
Inside bars
Engulfing bars
False breaks / Hikkake patterns
✅ Only take setups that are obvious – not forced.
6. Avoid Overtrading
Only take trades that match your exact plan. If it doesn’t match:
Skip it
Set alert and wait
✅ Patience filters out 80% of bad trades.
7. Check Risk/Reward
Only trade setups that offer minimum 1:2 R/R.
✅ Easier setups have clean entry + space for profit.
Example Filter Checklist ✅
| Filter | Yes/No |
|---|---|
| Is the market trending? | ✅ |
| Is there a key level nearby? | ✅ |
| Is there a price action signal? | ✅ |
| Is there confluence (2+ factors)? | ✅ |
| Is R/R at least 1:2? | ✅ |
| Does the chart look clean? | ✅ |
✅ If most answers are YES → it’s an easy setup.
Would you like an image or printable checklist of this process?
💰✅ Summary Checklist – Easiest Setup Filter
| Filter Step | ✅ Pass |
|---|---|
| Trend is clear | ✅ |
| Setup forms at a key level | ✅ |
| Clean price action signal present | ✅ |
| Pullback entry | ✅ |
| 2–3 confluences | ✅ |
| Minimum 1:2 R/R | ✅ |
💡 If most are ✅ → it’s likely an easy, high-probability setup.
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Entry With RSI
Taking trades solely on a daily, weekly, or monthly basis refers to a trading strategy where analysis and trade decisions are primarily based on these higher timeframes, rather than on intraday charts (like 1-hour, 15-minute, or 5-minute charts). This approach defines a specific style of trading often associated with swing trading or position trading, as opposed to day trading or scalping.
Here’s a breakdown of what this means and its implications:
What it Means:
Daily Chart (D1): Each candlestick represents one full day of price action. Trades are typically held for several days to a few weeks.
Weekly Chart (W1): Each candlestick represents one full week of price action. Trades can be held for several weeks to a few months.
Monthly Chart (MN1): Each candlestick represents one full month of price action. Trades are often held for several months to a year or more.
Trade entries, exits, stop-loss placements, and profit targets are determined by the analysis of these specific timeframes. While lower timeframes might be used for fine-tuning entries after a setup is confirmed on a higher timeframe, the primary decision-making process is rooted in the larger time scale.
Key Benefits of Trading on Higher Timeframes:
Reduced Market Noise and False Signals: Higher timeframes filter out much of the random, short-term price fluctuations and “noise” seen on lower timeframes. This means fewer false breakouts, fewer whipsaws, and more reliable candlestick patterns and trend signals.
Clearer Trends: Trends are generally more established and easier to identify on daily, weekly, or monthly charts. They tend to be more robust and sustainable.
Less Emotional Stress: Since trades are not monitored minute-by-minute, the emotional toll of constant price fluctuations is significantly reduced. This leads to calmer decision-making and fewer impulsive actions.
Lower Transaction Costs (Relatively): Fewer trades mean fewer commissions and spreads paid over time, which can contribute to overall profitability.
More Time for Analysis and Life: This approach doesn’t require constant screen time. Traders can analyze charts once a day (after the daily close), once a week (over the weekend), or once a month, allowing for more time for other commitments, work, or personal life.
Larger Profit Potential Per Trade: While opportunities are fewer, the trades taken on higher timeframes often aim for larger price movements, leading to greater profit potential per individual trade if successful.
Considerations:
Fewer Trading Opportunities: By being more selective and filtering out lower timeframe noise, you will naturally have fewer setups that meet your criteria compared to day trading.
Wider Stop-Losses: To accommodate the larger price swings and give trades room to breathe on higher timeframes, stop-losses will generally be wider in terms of absolute price points. This means the dollar amount risked per trade might be higher, though the percentage of your account risked should always remain small and consistent (e.g., 1-2% per trade).
Longer Holding Periods: Trades can last for days, weeks, or even months, requiring patience and the ability to manage open positions for extended periods.
For many traders, especially those who cannot dedicate full-time hours to the market or who prefer a less stressful approach, focusing solely on daily, weekly, or monthly timeframes offers a more sustainable and potentially more profitable trading career.
Alright, my calm, collected market strategists! We’ve discussed why trading on the daily, weekly, or monthly charts is a smart move in a serious tone. But let’s be honest, the real reason we do it is because it turns us into the market’s equivalent of a Zen Master on a Permanent Siesta!
Daily, Weekly, Monthly Trading: Because Life’s Too Short for Minute-by-Minute Meltdowns!
You see, there are two kinds of traders out there:
The “Minute-Chart Squirrels”: These poor souls are glued to their screens, frantically chasing every twitch on the 1-minute chart. Their eyes are red, their fingers are cramped, and their nerves are frayed. They jump in, jump out, get whipsawed by every rogue pixel, and essentially live in a constant state of mild panic. Their trading life is like trying to enjoy a quiet coffee at a bustling Barcelona market while simultaneously catching every single crumb that falls from every single table. Exhausting!
The “Higher-Timeframe Siesta Lovers” (That’s Us!): We, on the other hand, operate on a different plane of existence. We sip our espresso (or imaginary piña colada), glance at the daily chart when it closes, maybe check the weekly on a Sunday, and then proceed to enjoy our lives! We’re not chasing crumbs; we’re waiting for the entire paella to be served.
Why We’re Trading on “Island Time” (And Why It’s Glorious!):
Filters Out the Market’s Annoying Drunk Uncle: On the lower timeframes, the market is full of “noise” – random, erratic movements that mean absolutely nothing in the grand scheme of things. Trading daily/weekly/monthly is like putting on noise-canceling headphones. We ignore the market’s constant, pointless chatter and listen only to its grand, sweeping pronouncements. No more trading based on a squirrel sneezing near the exchange!
The Trends Are So Clear, They’re Wearing Neon Signs: On higher timeframes, the market’s true direction becomes undeniable. You can practically see the trend stretching out before you like a perfectly paved highway, not a bumpy, winding goat path. It’s like checking the long-range weather forecast for your vacation instead of panicking about every single cloud.
Our Stress Levels Are Lower Than a Limbo Dancer in a Trench: Since we’re not tied to the screen like a medieval prisoner, we experience vastly less stress. We don’t care if the price wiggles a bit in the middle of the day. Our trades are based on the confirmed story at the end of the day or week. More time for tapas, less time for therapy!
We’re Fishing for Whales, Not Minnows: Yes, there are fewer “setups” on higher timeframes. But when they come, they’re often for much bigger moves. Why catch a hundred tiny fish when you can patiently wait for one glorious, profit-laden whale? Our trades aim for big swings, not little jiggles.
We Actually Have a Life (Gasp!): This is perhaps the biggest perk. Day traders often are their trading. We, the higher-timeframe elite, can analyze our charts, set our orders, and then go enjoy a leisurely stroll along the beach, knowing our strategy is playing out on its own schedule.
So, while the minute-chart squirrels are having heart palpitations over every tick, we’re here, calmly observing the market’s grand narrative. We trade on the daily, weekly, or monthly basis because it’s smarter, less stressful, and frankly, leaves us more time to perfect our sangria-making skills. Now, if you’ll excuse me, my daily candle just closed, and I think it’s time for a celebratory siesta!
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