Intra-Day Charts & The Myth of ‘Noise’

One of the greatest ‘myths‘ out there (or mis-information) is price action on the lower time frames (below 1hr charts) is just ‘noise‘. This is a highly confused notion of price action trading and nothing could be further from the truth.

Prop traders are often trading below the 1hr time frames every day, oftentimes on the 1m, 3m or 5m charts. Bank traders will often be highly active, also trading on the lower TFs. They do this while also building up large swing positions they hold for weeks, perhaps months to trade with the trend. Same goes for desk traders and institutional ones alike.

The bottom line is, professional traders are trading off all time frames. There is no ‘holy grail’ of time frames. There is no bastion of good signals that only exist on the higher TFs (daily and 4hr charts) while anything below the 1hr chart is just ‘noise’ or garbage. High quality signals exist on all time frames, and traders are making money on virtually every time frame you can imagine. The ‘noise’ idea you’ve been told is a myth.lower time frame noise myth busted chris capre 2ndskiesforex
Sorry to kill the sacred cow – but those espousing the freshman idea only good signals exist on the daily/4hr charts clearly do not understand price action.

The idea of noise existing on a particular time frame comes down to the lack of one thing – training. I will use an analogy to demonstrate this point.

Foreign Tongues & Cryptography

If I am walking down a street in my home country, I will understand what people are saying. Why? Because I speak the language. I have been trained to.

Now put me on a busy street in Finland or Mongolia, and I will have no idea what they are saying. Their conversations will sound like noise to me. In fact almost any language that is unrecognizable to me will sound like ‘noise’.

Why? Training.

But give me six months to a year learning that language, and what before sounded like ‘noise’, will now sound like a conversation. It will have information, meaning and a familiarity to it. I will be able to understand and recognize what they are saying. The only difference between the two scenarios, is training.

Same goes for cryptographers (those who translate coded communications). What may sound like noise to me and you, is actually a hidden message or code for them. Again – the only difference between us and them is training.

cryptography training intra-day time frames 2ndskiesforex

It Comes Down To This

If you have been only trading the higher TFs, then for a little bit, the lower TFs will look like ‘noise’ to you. You will not understand the differences, the rhythms, and how the information is expressed a little differently. But through training, practice and experience, you will start to understand the code.

What you will find are great intra-day signals, key levels, and how the intra-day price action flows. You will spot opportunities and see patterns. With a little effort, practice and training, the ‘noise’ of those time frames will start to become clear and trades will start to pop out to you. With proper training comes an improved trading mindset.

That is not to say you should or have to. I always recommend finding what is most natural to you, your availability, and inclinations. That could be only on lower TFs, higher ones, or a mix of both. Everyone will have a sweet-spot. It is up to you to find that.

To be clear, I am not saying this comes easily, but nothing in trading ever does. It takes patience, work, practice and training, but it certainly can be done.

Hence do not believe the confused freshman ideas there are boogeymen down there. I have many students trading the intra-day charts successfully several times a day while maintaining accuracy and profitability. There is no reason why you cannot do the same.

Buddhist, Trader and Philanthropist

I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • JT

    100% agree with you, definitely lower time frames are not noise. Actually, a timeframe is just an arrangement of snapshots periodically taken to the real price. Then H4, for example, is just a picture every 4 hours which contains exactly the same information as if you take a look of 48 bars or more in 5 min TF. Setups can be detected in advance in lower timeframes, that’s all. I believe the only drawback of trading lower timeframes is the speed of trading….

  • dv34

    Well, all bars are made up of the same thing,- filled orders…!
    Nothing is more important than price action, despite the rhetoric to the contrary

  • kabalpathi

    wow ..Thanks for clearing this point Chris.

  • Rivo

    Hello Chris, I would like to ask you: Is the intraday trading, especially under 1 hour timeframe, part of your Trading Course?

    • Chris Capre

      Hello Rivo,

      Yes, although technically all three course have intra-day trading strategies on the 1hr time frame and below, the course with the most strategies below the 1hr time frame is the Adv. Price Action Course.

      Most of the intra-day trading I do on a daily basis, I am using strategies from this course.

      Hopefully that answers your questions.

      Email me via the Contact Page for further questions.

      Kind Regards,
      Chris Capre