Market Pendulum: Unique Perspectives in Time

Simple Trading Logic
“To everything there is a season, and a time to every purpose
under the heaven” (Eccl 3:1)

An awareness of time frame trends is critical to the success of any investment. In my view, it is the gold standard for trading in context and setting.

Most investors ignore this context, deal only with the daily fluctuations and forget about the effect of higher trend forces on lower trends.

Key Points of Logic

Determining if the daily time frame is positive is the vital first step before moving on to higher time frames.
A positive TDI weekly posture is a key metric and “steering mechanism”. Without its positive force, any investment will have less potential, power and progress.
Trading should always occur within the context and setting of the next higher time frame to determine the duration and durability of the current trade. This is a simple and logical exercise.
Keeping track of any significant support/resistance zones along the way is very important too.
If your preferred trading time frame is not positive, stand aside.
One can claim to be an early contrarian or value investor. Be sure the time frame trends support that outlook.
One can also claim to be ahead of the herd. If you are riding ahead of the herd, take a look back every now and then and make sure it’s still there!
All the cheerleading in the world, with notices of impending moon shots and other assorted nonsense, does not change adverse trends and forces. All these activities provide a false flag of hope without foundation.
Predictions or forecasts based on other than the mathematical trend evidence are false and should be ignored.

We can avoid disillusionment, despair and discouragement if we ask ourselves one simple question. What is the trend?

The Time Frame Clock

A trend, whether positive or negative, always starts first in the daily time frame, before any possible migration to higher time frames.

If the daily trend is positive but both the weekly and monthly are negative, the lifespan of the daily is clearly limited because the stronger trend forces are pressing down on the daily time frame and limiting its progress. That's why the daily fails.

Here is another example we can all relate to. If you have a three stage rocket engine designed to achieve orbit and only one stage kicks in, how far in time and distance will this journey last?

If a failure occurs it pays to wait until a new daily trend is again identified before considering reentering. At that time, review the status of higher time frames.

The Force of Time

"It's really very simple. In terms of price, time and distance, time is the most important. If one can tell time, one can be quite successful. Price and distance follow. Meditate on that for a minute." Part 2 - Independence Gold Mine

Trading should always occur within the context and setting of the next higher time frame. For example, the weekly trend is 5 times stronger than the daily. The monthly trend is about 22 times stronger than the daily.

Upon achieving a positive weekly (and possibly later, a monthly) overall trend power is enhanced allowing for a longer projected duration in the trade and a potentially larger profit.

The Number #1 Trading Method

The number #1 trading method with the highest probability rating of success is a new daily trend emerging within the context of a continuing positive weekly and monthly trend.

Trading in context provides positive price performance, not promises or pipe dreams. In that regard, the credibility of a trading record counts!

Logical Conclusion

Simply put, it's all about telling time with the TDI. Anyone can do this.

If one truly understands these simple time frame trend concepts, one is already miles ahead of the crowd.

Simple trading logic and in plain sight all along!

Related:

The PTD Formula - Click here

The Trading Clock & Telling Time - Click here

Time Distance & the Universe - Click here

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Trend & Cycle Decoded

(Expanded Version)

“If you want to find the secrets of the universe, think in terms of energy, frequency and vibration” - Nikola Tesla

You really do not want to know the future because if you did, you would simply be a robot fulfilling that future “plan”. There would be no free will, no choices and no mystery.

In trading markets, we can measure trends and cycles but what we are really doing is probability analysis. We do not absolutely know the outcome, only a probable result.

However, in longer term trends and cycles, the probabilities become more reliable.

First, some supporting background information.

Trend & Cycles

Mathematician Jeffrey West describes trends and cycles as follows:

“From appearances, price movements appear not random, but chaotic. These apparent chaotic conditions are a tangled web of cause and effect creating innumerable variables and probable outcomes. This is the defining characteristic of chaos, but within this web of chaos, it does have a certain structure. Decoding and defining investing behavior and its variables reveals tell-tale signs of this group structure, its mass (force) and direction. These results are probabilities of varying strength and force depending on the length of the trend or cycle. Longer cycles equal a greater reliability of a probable outcome.

This group behavior and structure is otherwise known as the “herd instinct” and it depends on a large group participating in this trend of boom and bust.”

Group dynamics, structure and behavior create geometric, mathematical trends and cycles. "This is not unlike spiders spinning their geometrically perfect webs with no apparent awareness of their amazing feats."

As the web grows larger, the picture becomes more complete revealing the beauty, harmony and balance of nature’s proportions.

Continued here

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Time, Distance & the Universe

"Math is the language of our universe" Galileo was quoted as saying "nature's great book is written in mathematical language".

Mankind did not invent math but simply discovered it. It reveals the "blueprint", as it were, of everything in nature and the universe, its relevance and behavior.

Revealing time and distance is a part of this concept, even in the investment world.

Continued here

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Creating Time, Buying Time

& Balance of Time

In general reference terms, we can all relate to the time frames of the “past, present and future” or “yesterday, today and tomorrow”. These are all valid reference points because they relate to our perception of time period extensions.

Creating Time

We can “make time” for a project, but we cannot “create time” since it is a straight, progressive and moving mathematical measurement, not a manufactured product.

In this connection, there is no such thing as the “present” or “now”. It just passed you by.

There is only the past and the future time frames. We also cannot change the past. If that were possible, it would result in a change of future outcomes.

As a result, the regrettable past is behind us, the present is nowhere to be found and the future is uncertain.

What to do? Shall we buy time?

Continued here