Saturday, February 6, 2010

What is the "trend" to a trader?

Interestingly, I've noticed that many traders do not understand that the trend is related to the timeframe.  We can be in a daily uptrend but hourly or 15min downtrend,, all at the same time. In this case, going SHORT on a daytrade or scalp would be "trading with the trend" even thought the daily trend is up... applies to weekly monthly too...

That's why, on my computer screen, I always simultaneously display the Daily, 60min, 15min, 3min, 2min,1min, and 133t (when daytrading).... for swings i only use 15,60, daily weekly (not much emphasis on weekly for short term swings) ... if the daily, 60min, 15min are all "up", then i go heavily long (more shares) because multiple layers of support exist.



* ChristopherStockGuy is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. For details, see the post from SATURDAY, AUGUST 15, 2009 titled "Disclaimer".





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