Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders
Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro
Long Term Trends
1/ The long term trend depends in the first higher long term trend. For example, the first higher long term trend for the daily chart is the monthly chart and first higher long term trend for weekly chart is the quarterly chart.
In other words, if one is using a medium term trend of a specific long term time frameas along term trend on its own, one must refer to its long term trend.
2/ The long term trend for a day trader is the daily chart, monthly chart for a swing trader and quarterly chart for are position trader, yearly chart for an investor. The long term trend is relative to each market participant.
Please note that a trader is free to use anytime frame he or she prefers.
Therefore, a day trader may use weekly or monthly chart as the long term
trend if he wants.
3/ A long term trend regroups both its medium and short term trends.
That means, both the short and medium terms form the long term trend.
4/ A long term trend influences both its medium and short term trends. For example the reversal of the long term trend will also cause the reversal of both short and medium term trends. As long as the long term trend stays bearish or bullish, one must align short and medium term trends with it in view to time the financial markets precisely.
5/ The beginning of the long term trend is its first short term trend that grows into a medium term trend before turning into a long term trend. Short term trends grow into medium term trends that also turns into long term trends.
6/ The length or time scope for the long term trend depends on how long one wishes to hold positions. It is relative to each market participants. For example an investor may hold a position for a decade instead of year to allow the profit to supersede the risk over that period. The higher the risk one is taking the longer long term one should apply.
7/ According to my own observation, the ratio between the long term trend and medium is twenty-two.
The exact medium term trend for a yearly investor is 16 days or roughly half a month. That is 365 divided by 22. So instead of using sixteen days, one may use instead two-week chart if one is technical trader.