All Market Reversals Begin on the 1 Minute Chart
- Thread starter Buy1Sell2
- Start date
a) define the exact period you're solving for on long-term;
b) ID where on this long term bar you think a reversal will occur;
c) define a 'focus' period and wait for a termination point to occur on this bar inside section b;
d) assuming you're watching a one-minute bar, this is your 'lower period' - ID the reversal that occurs inside of sections b & c.
I don't trade using multiple periods anymore but if I were, that is how I would do it.
b) ID where on this long term bar you think a reversal will occur;
c) define a 'focus' period and wait for a termination point to occur on this bar inside section b;
d) assuming you're watching a one-minute bar, this is your 'lower period' - ID the reversal that occurs inside of sections b & c.
I don't trade using multiple periods anymore but if I were, that is how I would do it.
Yes, and all the wrong signals too.
True. Point is that all charts are tick charts. The only difference is how we choose to bundle the data and view the information.
Exactly, try to filter, throw away the bad signals, and keep the good ones.
Daily and higher. Major Market reversals
I can't solve the equation if I don't have all the variables (i.e., a defined duration). To catch that large of a duration filtering down into a 1-minute low is not something I'm good at. But, i would take the same approach that I laid out above though - it would simply have more layers. (ie, solving for a yearly bar then I would have yearly, quarterly, monthly, weekly, daily, etc etc all as layers to cluster together).
Well, not exactly, but this is shaping up to be a detour and is probably better discussed elsewhere.
The future is unknown. That's the synthesis of all this inquiry. Certainty isn't in the market, and can only be hoped to be attained in our actions. In other words, actions can have certainty but not the outcome of those actions.
Knowing where and when the ultimate reversal is is only determined in hindsight (unless one is a time traveler). A trader can only choose to enter at certain higher probability locations and then take it from there. One of those entry points might turn out to be the turning point.
Gringo