Matching Signals to Time

Discussion in 'Technical Analysis' started by hwaxen, Jun 12, 2003.

  1. hwaxen


    I think a common mistake is when signals are not matched to the appropriate time frame.

    For example when a 50 day average crosses above a 200 day average. This is an intermediate term signal but it looks like most traders take it as a short term signal. Generally on a cross like this the markets are a bit over bought and then causes a short term trade from the long side to fail, even though an important bullish signal has been generated.