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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (4460)	6/18/2022 7:43:27 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 10587

You raise a good point, and I can't do justice to it in text. What I can say is that every professional trader is acutely aware of the one timeframe below him and two timeframes above him. So the guy who trades on a 15 minute chart, needs to be aware of the 5 minute chart and hourly and daily (or something like that), and the one who trades on a daily chart needs to be aware of the hourly and weekly. At inflection points multiple timeframes converge to the same point, but the shorter timeframes will run counter to the longer ones. The longer timeframe always wins. This is what bear market rallies and buy the dips are really about - shorter timeframe running against the longer one and getting smacked. Here's the rub - the shorter the timeframe, the greater the impact of psychology and pure tape reading. The longer timeframes are more about the fundamentals and the macro picture. You never want to be on the wrong side of the longer trend at inflection points. The type of calculations I gave you are for larger funds that have been collecting a long cash position and are just waiting to go all in. I am just marking where the inflection points may be so I am prepared. And yes, I think investors should take Powell at his word. Much more money has been lost trying to second guess him than to just take him at his word.