Trading Proverb #6, System Design

Trading Proverb #6. Always use the 30M chart to design your trading method. It does not matter what time frame you prefer to trade, as long as the development and tweaking are performed on the 30M chart.
 
While this is primarily focused for new traders, veterans might find this useful too. To begin, it is logical to consider what is equilibrium? Once you can figure out what is considered to be equilibrium, or the middle of the range, then you can adjust your settings to trade when price moves away from it.

Consider this: Most traders rely on the 50 EMA and 200 EMA as major support and resistance lines. Since most people would like more profit and more activity in their trading, then you should probably consider the 50 EMA as the primary equilibrium price. While obviously price goes above and below it, and occasionally bounces off of it, it is as good a place to start as any other. So, if you are using the 50 EMA, then put it into perspective. It means you are looking at 50 periods, right? There are 24 hours in a day, so the best timeframe to see 50 periods would be the 30M chart right? And, to further validate this timeframe, what if you wanted to use the 200 EMA as equilibrium? There are about 120 hours in a week of trading, so if you use the 30M chart, then you have 200 periods for the week.

Hopefully this makes sense. It doesn't matter what time frame you decide to trade with your system, you will get more accurate indicator settings if you develop the system using a 30M chart. Good Luck:))