The Stocks trade using multiple periods
To improve the efficiency of our trading strategy, we see that the main trends are using a larger period than we normally use and smaller to get into action.
Say you want to swap using our daily charts. We take the weekly charts to see the current fashions. Suppose there is a trend of rise in the weekly chart will tend to trade only long positions. We will only use entries in the daily charts to enter long positions. When sell signals are generated simply leave our long positions. Therefore, we should not sell short.
Suppose there is a trend of decline in the weekly chart. We will have to share only the short positions. We will use entries in the daily charts to enter short positions only. When buy signals generated only leave our short positions. Therefore, we should not enter long positions.
Now that we are using two periods we must deal with to fix a timetable for entry into the fashion or adding additional positions. We can use a chart of hours to analyze our tickets. Suppose that both monthly and daily charts are in an ascending trend. Will enter a long position or in a long position when a graphic extra hours give us a buy signal. Suppose the daily and weekly charts that are on a downward trend. Enter a short position or a short position when our chart additional hours give us a sell signal. This period would not be use to go out of fashion. Only serve to enhance the moment we entered. For departures would use the signals generated by the daily charts.
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[...] The Stocks trade using multiple periods [...]
July 18th, 2010 at 8:58 pm