Sunday, September 26, 2021

Time Frame ... The ever challenging dilmenma

Market with it's dynamic NON-LINEAR properties will defeat anyone who approach the market from the LINEAR tangent. The market trend trend swing intensity is inconsistent and irregular like the SEA TIDE and WAVES. Like sound travels in a cave tunnel or some might it refer it to wind flow draft.

The inconsistent and irregular trend intensity manifest only confirms the erratic human emotional behavior.

The sound wave components are wavelength, period, amplitude and frequency.

The trend behaves in the same manner under pressure.

Luckily, price trend behaves more like sea tide and waves with repeating cyclically.

The tide is made of many cumulative ascending and descending waves components. 

A rising tide is the NETT cumulative ascending waves greater than descending waves. On the contrary a receding tide is the NETT cumulative descending waves greater than ascending waves.

This bring us to the next question. Which is the IDEAL anchor time frame to determine the TIDE?

Will it be daily chart? Weekly chart? 4-hours chart or 1-hour?

Every time frame has a "normal" range and "outer" range. The smaller the time frame, the smaller the range. The bigger the time frame, the bigger the range.

Once the Tide has changed, it is the end of the current and the beginning of a new.

Question is what do we use to determine such change and confirmation?

It is never Finance or Accounting. It is about behavioral activities of CONFIDENCE, FEAR and GREED    

 

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