Sunday, December 12, 2010

Trading time-frame matters: ChartsEdge week-ahead cycle-based forecasts for equities and gold

As I've mentioned, time is a very important factor in trading. My comment today is about knowing your own timeframes - are you a position investor for months? Swing trader over days or weeks? Fast trader either intraday or for only a couple of days at a time? Knowing your parameters helps dictate how you trade including position size, use of cash versus margin, stocks versus futures, use of options, etc. It also influences how you incorporate cycles forecasts. These forecasts can indicate when the market's likely to move, and usually which direction (but may invert, and I wonder if that happened last week?), and may or may not suggest whether a high will be a higher high; or if a low will be a lower low. These are some reasons to include cycles as one element in a range of technical methods. Below are the week-ahead cycle-based forecasts from Mike Korell's ChartsEdge (thanks again, Mike!). it's fascinating that in some of his work, he also incorporates proven data on solar cycles, geocosmics and geomagnetics. The ChartsEdge forecasts come in several styles for subscribers; these are simply cycle-based maps to be used as one guide, not necessarily a standalone single method - that's why we refer to several good methods. However, Mike's ChartsEdge's daily (intraday for subscribers) and week-ahead forecasts more often than not give a very good sense about the relative lows and highs to come. (He's also generating different forecasts with different methods in order to help subscribers gain higher degrees of accuracy). There's additional info on that at his website, and some is also at my "UBTNB3" blog. So here's what his basic cycles set shows for this week:
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