pairs time frame

Discussion in 'Strategy Development' started by chiguy, Aug 4, 2006.

  1. what time frame do you use to determine the base value...or fair value if you will of a pair...

    do you use daily or weekly charts to arrive at a value...

    thanks in advance...
     
  2. Arnie

    Arnie

    I do better just playing for the intraday range so I look at 5 min charts. It may just be me, but when I put on a pair that is near a 6 month hi/lo, one that I would like to hold for a few days/weeks, I tend to get clobbered on those trades because I was taught to "add another layer" if it goes against you. If you don't plan these out you end up taking a big loss when they don't work out. By focusing on a shorter time frame, I am more likely to scratch a trade if it doesn't work right away. Which suits me better. I have seen a lot of people blow up trading pairs. Sometimes you can have it on the "right" way (read fundamentals) and still get clobbered.