There is a lot of discussion about trading on small time frames and accordingly the topic of “market noise” pops up. Allegedly, small TFs have this noise. I think it’s worth figuring out what it is? I read some articles on this topic and came to the conclusion that “market noise” is generally understood as price movement, it is very important here, which cannot be explained by the trader. I was added, “this is a movement that not only a particular trader cannot explain to himself, but also which is able to bring confusion into his actions and, as a result, can make him make hasty decisions and, accordingly, make mistakes.” There is also an opinion that “market noise” is a price movement against an open position, as a result of which the stop is knocked down, but the price goes in the same direction as the trader expected.
Let’s see if there really is “market noise” and is there an inexplicable price movement? We all know that price movement is driven by activity between buyers and sellers. The bottom line is that the price moves down due to active sales in the market, which sort out limit buyers at each subsequent price step. Up – due to active purchases in the market, which sort out limit sellers at each subsequent price step. It cannot be otherwise, and this process has not changed and will not change by definition. We see that any movement can be explained. The problem is that the trader either does not use this information, believing that the reasons for the movement lie in another analysis, or does not understand how to use it for trading.
So the so-called “market noise” exists, but only in traders, not in the market. Therefore, the TF does not affect the misunderstanding of the market (market noise).
What are the differences? Only in volatility and time. And so everything is cyclical, relatively, the same sellers and buyers and no noise.