The strength of USD against major currencies defies the academic premise of what value is all about. As simple as a chart can be; it is very potent; reliable as long one does not stray away from the basic principles of trend and trend direction.
Over the years I have learnt to tame myself when dealing with markets more than trying to tame the market which is IMPOSSIBLE.
As time pass, I find the markets easier to read and swim. Unlike in the past it is turbulent and treacherous.
I once read somewhere:
TIME IS THE GREATEST TEACHER.
Each and every day, I learn things that are importantly crucial which I did not pay attention.
For many years, I disregarded the importance and reliability of higher time frames trend and focusing on daily and lower time frames
Over time, I realized the incredible valuable weekly and monthly charts. This makes my game less volatile and more stable.
The different degree of trend strength can be simply determined using visual. It is best used with the 45 degrees to determine trend force of the core “anchor” time frame.
When the price chart is trending at Steeper than 45 degrees on the UP trend, I consider this to be strong. When it is price chart trending less than 45 degree on the UP trend, I take this to be weak.
How do we make use of lower and higher time frame with the strong and weak trend?
When the trend is STRONG, use the lower time frame chart with the anchor to analyze the trend reversal. IF WEEKLY chart is the anchor time, the lower time frame is DAILY chart. IF DAILY chart is the anchor time, the lower time frame is 4H or 6H or 8H chart depending on the available chart.
When the trend is WEAK, we use the higher time frame chart with the anchor. If DAILY is the anchor time, WEEKLY chart is the higher time frame. However if WEEKLY is the anchor, MONTHLY chart is the higher time.
No comments:
Post a Comment