The critical importance of time frames INTC example

2021年10月22日

As in life, the questions you ask will determine the answers you get when it comes to trading. We live in an age of "instantism" - we have been conditioned to believe that faster is better – faster price executions, faster trading, faster feedback, faster news, faster food, faster everything! And this need for speed has been translated into trading. I know whereof I speak since as recently as 8 years ago the vast majority of my trading was day trading. But I no longer believe that day trading is viable for most people unless they trade large positions for very predictable small moves. That's what high-frequency trading is all about. I have no need or interest in a 10 second chart. But that is of course personal preference. As an example of what I'm referring to take the current situation in Intel as shown in chart form above. The moving average channel method that I developed many years ago clearly shows the trend has been consistently higher with support coming at or slightly below the moving average channel monthly chart per the methodology. As a long-term trader or investor, I see an opportunity to buy at support. The trader who has been looking at the daily chart has been short. Can both points of view be correct? Absolutely! The short-term trader using the moving average channel methodology has been short. Profit targets have been achieved. The long-term trader or investor using the monthly chart has now switched into "look for a buying opportunity" mode and can switch to a daily chart for timing.
RBT
NOTE: the two indicators in the chart above are a 10 period Simple moving average of the high, an 8 period Simple moving average of the low. The lower indicator is Williams accumulation distribution and a 57 Simple moving average of Williams.