:: actio-et-reactio ::
amg's market charts and blather
For short term moves, which include short term position trades, some folks use a window of the last 20 days. I've been using 30 days on the 60 minute chart as it shows the transition from a slightly "older" set of lines to the fresher set being made.
Why bring this up? Well, when day 31 rolls around, quite often prior pivot highs and lows fall off the chart. From a charting perspective, this means one of two things: either reconstruct the old lines (which I sometimes do, indicating them with dashed lines), or construct entirely new ones.
From a price point of view, it suggests that the old highs/lows may have "lost" their influence (on that time frame). A good reminder of one reason why a triple-screen method (ie, three time frames, the shorter and longer bracketing your preferred) is a good method.
This set me to thinking... Have you checked out turn-over rates in big funds? It has skyrocketed. No doubt the casino mentality took hold during the Big Bull Bubble and hasn't let go. High turn over rates mean shorter hold times, which would reflect itself in short time frames. On indication is that "old" lines die off to be replaced by new ones and so, a shorter trading day window is appropriate.
As always, just my opinion. [click on chart below for full size in new window]
|
moon phases |
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
blather: nonsensical talk.
At times my analysis log, at times sharing what I've learned. Always my own work and views.
Content: amg
Basis: glish & bluerobot
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