August 9, 2007

How to trade with the trend

Frequently Asked Trading Question -  How to trade with the trend

Question: If you get a sell setup on a 30 min chart. do you look at a higher time frame for overall major trends to help with profit taking? Also to see if your in a price retracement before another move up? - Vince Silver

Answer: Vince, as far as getting into trades, I don't look at other time frames as it only gets me confused and can even talk me out of the trade.  Remember each time frame is almost like its own little world and can be out of sync with other time frames.

However…  When I am looking to exit a trade then looking at a bigger time frame can be useful as it helps me spot key target points such as significant previous swing highs or lows.

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