Trading “distance NOT displacement” By Greg D
Many traders will tell you that only the larger time frames hold true profit, while this is true you are missing ALOT of market movement using indicators and price indications during these time frames. Here is an example of a small downtrend in the dailies…
As you can tell the overall projection of the trend is down, yet it his many whipsaws during this movement. The question to ask is “How can we profit off each “up and down” the market throws at us?” The anwer is using the larger time frame to trade the smaller. For example..suppose we have the movement shown above in the dailies, what you would do is examine the trend channel/wave count of the larger time frame, and once you have a clear picure of where the market is going, examine the closest smaller time frame’s trend channel’s/wave count and gain profit off every movement the market makes. “Micromanage” your trade.
By: Greg D 10/22/06
Filed under: Theory | Leave a Comment
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