Normal
Timeframes. This is the starting point. I look at all the time frames initially. I also look quite quickly on the first pass, I don't want to study any 1 time period, I want areas of interest to jump out at me. If at a glance I see nothing, usually, there is nothing there.This is a chopped down weekly chart.[ATTACH=full]91009[/ATTACH]There are 3 areas of 'consolidation (a) 2600/2800 and (b) 2600/2800 [again] and the transition to the two areas of more obvious consolidation. The first, not identified, would more likely be an exit area from an earlier trade.Area (a) looks different in a daily time frame.[ATTACH=full]91010[/ATTACH]It breaks down into two areas of consolidation, both of which is potentially a trade, depending on the taking of that trade in a lower time period.Consolidation (b) is much easier to trade:[ATTACH=full]91011[/ATTACH]Finally, the 'V' bottom on an hourly chart:[ATTACH=full]91012[/ATTACH]Which itself resolves into a number of consolidations: (a) forms the 'V' bottom, and the bar from 2350 up to [almost] 2400 would be your exit from the short trade.There are then 2 small consolidations [in the middle there] that warrant either an exit awaiting a new entry or [ii] moving up stops [if you are liking the trade in higher time frames].And the final consolidation at (c) which is where we are currently. I think we break higher. Confirmation will be a [true] move higher through this area.And finally the 5min chart looking at consolidation (c):[ATTACH=full]91013[/ATTACH]So when I trade, I am first picking my time frame. I pick my time frame based on where I can see a significant consolidation. Thus my time frame will change and not be consistent. If I select the 1 hour time frame as holding the best consolidation, I am then looking at the daily, just to confirm that I still like the trade and the 30mins chart for an entry/exit. So the 1 hour triggers the trade, but the trade is managed in conjunction with the lower time frame.This is the foundation. The foundation is built on the ability to 'see' the foundation in the first place. To the foundation you can add all of your bells and whistles to aid in that vision. Too many however will have the counter-intuitive effect of blinding or confusing you. Currently I like (a) Bollinger Bands and (b) VWAP. I have through the years used many others.Hopefully that makes some sense.jog onduc
Timeframes. This is the starting point. I look at all the time frames initially. I also look quite quickly on the first pass, I don't want to study any 1 time period, I want areas of interest to jump out at me. If at a glance I see nothing, usually, there is nothing there.
This is a chopped down weekly chart.
[ATTACH=full]91009[/ATTACH]
There are 3 areas of 'consolidation (a) 2600/2800 and (b) 2600/2800 [again] and the transition to the two areas of more obvious consolidation. The first, not identified, would more likely be an exit area from an earlier trade.
Area (a) looks different in a daily time frame.
[ATTACH=full]91010[/ATTACH]
It breaks down into two areas of consolidation, both of which is potentially a trade, depending on the taking of that trade in a lower time period.
Consolidation (b) is much easier to trade:
[ATTACH=full]91011[/ATTACH]
Finally, the 'V' bottom on an hourly chart:
[ATTACH=full]91012[/ATTACH]
Which itself resolves into a number of consolidations: (a) forms the 'V' bottom, and the bar from 2350 up to [almost] 2400 would be your exit from the short trade.
There are then 2 small consolidations [in the middle there] that warrant either an exit awaiting a new entry or [ii] moving up stops [if you are liking the trade in higher time frames].
And the final consolidation at (c) which is where we are currently. I think we break higher. Confirmation will be a [true] move higher through this area.
And finally the 5min chart looking at consolidation (c):
[ATTACH=full]91013[/ATTACH]
So when I trade, I am first picking my time frame. I pick my time frame based on where I can see a significant consolidation. Thus my time frame will change and not be consistent. If I select the 1 hour time frame as holding the best consolidation, I am then looking at the daily, just to confirm that I still like the trade and the 30mins chart for an entry/exit. So the 1 hour triggers the trade, but the trade is managed in conjunction with the lower time frame.
This is the foundation. The foundation is built on the ability to 'see' the foundation in the first place. To the foundation you can add all of your bells and whistles to aid in that vision. Too many however will have the counter-intuitive effect of blinding or confusing you. Currently I like (a) Bollinger Bands and (b) VWAP. I have through the years used many others.
Hopefully that makes some sense.
jog on
duc
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