jjrock
Registered: Sep 2006
Posts: 5 |
10-05-12 02:57 PM
I think it makes sense to observe the market multiple time frames to make this determination? Look in a smaller time frame and determine if the smaller time frame is trending, that would be a first clue that your trading time frame may also be moving into trending phase.
Here's the idea...
If the smaller time frame is showing clear signs of moving up (ie. higher highs / higher lows and consolidations either move higher or test back to prior consolidations and hold support and then move higher, its trending UP).
If the smaller time frame behavior is such, then you can begin with an assumption/hypothesis that the time frame you are trading "could" be moving higher or into a trending phase higher.
The next step would be to look at your trading time frame and a higher time frame to look for roadblocks to the smaller degree trend. If there is major resistance in these time frames, its likely that the smaller degree will not sustain its move.
Whether it does or doesn't, you can take an objective look at these things and use the smaller time frame to set up entry and control risk and then see what happens on the larger time frame.
Just my .02 (maybe .01). 
|
