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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: booters who wrote (9119)	6/23/2000 2:05:00 PM
From: TraderAlan	Respond to of 18137

boots, I used a RMBS example in one of my articles earlier this year that shows a perfect 5 wave rally on the 1-min chart. Massive liquidity fills in all those noisy bits on stock charts. I traded the stock when it was a sleepy thing last year. Now it scares me too much. Alan

To: booters who wrote (9119)	6/23/2000 2:07:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 18137

I think you are on to something here. I think traders shift to the characteristics they are familiar with seeing that also works with their approach. This happens from stock to stock, and also can happen with the same trading instrument as mentioned in a more recent post of mine of the SPOO. I think this is volume, speed, and what I will term as price action dependant. For most traders, the qualities price action includes the speed, and volatility you mention. But I find it also incudes other things, like energy and directionality. Your observation on the larger time frames providing less volatility I think needs to be qualified. I think this is generally true in the way you are mentioning it. However, if the "slower" market comes from it slowing down from the time frame it has been operating well in, I think this increases the chance of volatility in the form of whipsawing. Now the price action still may be tradable if it is directional enough or the whipsawing is limited. And perhaps the approach to entry and exit will have to be adjusted accordingly. Also what can happen is that on the smaller time frames price is showing some type of volatility in the form of extended moves one direction and then the other. So even though the pattern on the larger time frame is resolving, the candlesticks end up showing price detours in the form of bodies with long tails. So a form of volatility has actually increased that can be best handled carefully in the smaller time frames with respect to the pattern showing up in this larger time frame. This is one reason I normally do not trade the larger time frames directly, like the 7-min or 15-min time frames. Getting whipsawed out of a position just to reenter it can be costly. So my solution to this that I have even adapted to my normal trading is using one time frame for the patterns and another smaller time frame for the entries and exits. Just some additional thoughts and observations. I do have quite a few opinions on the subject of trading, don't I? LOL Bob Graham