On which time frames to trade positionally?
Since a position trader will want to identify a long-term trend, then he should base his trading on some long-term higher time frame. On the lower time frame he will then identify the point of entry.
Since different time frames exist simultaneously in the markets at any given time, this has one consequence, namely that there may be conflicting trends within a particular instrument depending on the time frame being examined. It is not uncommon, for example, that when the SP 500 index is in an uptrend on a monthly frame, it will see a downtrend on a daily frame.
A different framework for identifying the trend and a different one for entering the market
As a general rule, the longer the time frame, the more reliable the signals. Traders should ideally use the higher time frame to define the primary trend of what they are trading and the lower time frames to fine tune the trade entry.
When position trading, a trader could focus on monthly and weekly charts to define the primary trend and daily charts (or H4 charts) to fine tune entries and exits.
On the next chart, we again have an example of the SP 500 index with a stochastic indicator, this time on a weekly frame.
SP 500 Index on a weekly time frame
You can see that while on chart 1 the stochastic was below 20 only once, there are many more possibilities on the weekly chart. How to take advantage of this? For example, a trader can have a strategy that whenever the stochastic in an uptrend gets below 20 on the weekly chart, it will be a buying opportunity for him. These are points 1, 2, 3 and 4.
The choice of time frame in position trading is of course individual and depends on the approach of each trader. The ideal is to start with the time frame that the trader is primarily interested in and supplement this with higher and lower time frames to confirm the overall trend and to refine the entry.