“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.
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
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 limitedbecause 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?
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
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 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.
Simply put, it's all abouttelling 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!
(Expanded Version 2021) “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.
Intrading 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 supportingbackground information.
Trend & Cycle Decoded
Mathematician Jeffrey West describes trends and cycles as follows:
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
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.”
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
"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
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.
We can “make time” for a project, but we cannot “create time” since it is a straight, progressive and 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?
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