On the Importance of Time Frames
When someone asks me what the trend is on a particular stock, the first question I ask them is, "What time frame are you looking at?" That's because the answer will typically differ according to time frame. For example, this past May I still considered a weekly chart of Monsanto (MON) to be bullish due to the larger overall pattern. At that time, when I put out the buy setup to watch for an entry, some traders thought I was crazy.
I can understand that assessment if someone had been looking at the daily chart, which was in rather bearish position technically. How do you reconcile that? It all depends on the time frame you are trading and what type of risk are you willing to take!...586 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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