Thursday, October 14, 2021

TREND ----- TIME FRAME ----- VOLATILTIY ---- REVERSAL

Trend ..... Time Frame .... Volatility ..... REVERSAL are all inter-related. 

A trend reversal or trend change is significant on a higher time frame. This is a rather generic open ended without specific which time frame refers!!!

I group time frames into 2 namely the intraday versus the non-intraday.

Depending on one's appetite, either one will end up trading the intraday or non-intraday time frame.

The intraday move will be frequent with smaller range as we trade the ripples.

The higher time frame namely the non-intraday will be bigger volatility range and less frequent.

Trend reversal or change on higher time range will run for weeks or months before the next reversal appears unlike intraday reversal which is insignificant with false moves.

Intraday is meant for "scalpers" and the non-intraday is for longer term trend traders/investors.

After going back and forth between the 2 groups of time frame, one has to sit back and have an honest deep soul searching to try understand the underlying profile and behavior. Decide which is best and suitable for your mass temperament.

Swinging between a fast scalpers and investing for a longer time frame, I conclude that a more reasonable strategy is to keep to higher time frame and minimize intraday shorter time frame.

When the market is volatile, generally this dynamic is for a short period against the higher time frame trend. Eventually the temporary diversion will revert to the trend direction of the higher time frame.

  

 

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