V.10:4 (151-154): Blending Time Frames by Linda Satterfield

V.10:4 (151-154): Blending Time Frames by Linda Satterfield
Item# \V10\C04\BLENDIN.PDF
$3.95
Availability: In Stock

Product Description

Blending Time Frames by Linda Satterfield

The stock market has worlds within worlds, if you think about it — time frames within time frames, all interlinked and interdependent. The problem is, if you look at too small a time frame, you could find yourself drowning in minutiae, and if you look at too large a time frame, you could find yourself missing signals of opportunity. There must be a way to equitably look at situations both large and small without getting bogged down. Linda Satterfield has a few suggestions.

For many traders, monitoring intraday charts can be an exciting experience. It's an upgrade into a fascinating world of easily accessible knowledge. Before computers, the world of intraday activity could only be laboriously perceived by keeping charts by hand. Now, with the touch of a button or two, a trader can zoom into a one-minute bar chart or back off to the larger perspective of a monthly chart. If the label and prices are removed and the scale adjusted, it is impossible to tell which time frame is on the screen. Such a wealth of information can be overwhelming and quite likely to result in a paralyzing situation for the unprepared trader. Which time frame is best for routine trading? Where are the best signals? Is it better to day trade or r stay a month? Is it possible to suffer from time frame myopia? Is it better to act now or wait for the five-minute chart to go overbought? These are only a few examples of what could turn out to be difficult and uniquely personal questions. Trial and error can be an expensive learning experience in a fast-moving market.

By understanding the framework of the market, some of those choices can be simplified and understood better. Here are some guidelines for integrating the different time frames into a cohesive market overview, with an example of the dynamics of the relationships.

Each time frame is inextricably related to the pattern in another. For example, a bearish double top on a five-minute chart can be part of a triangle pattern on a 60-minute chart, which in turn can be part of a topping pattern on a daily chart, which again, in turn, can be the right shoulder of an inverted head and shoulders pattern on a weekly chart, which (yes, again) could be a prelude to the third wave explosion on the monthly chart. The action at one level will have implications on the others. What might be a small splash on the monthly chart could become a tsunami on the five-minute chart.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order