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Perhaps the most common term used in trading is, “The trend is your friend”. Basically it means that if your trade is in the direction of the trend, you are better off than if your trade is not in the direction of the trend.
But which trend are they talking about? The Trading Between the Lines (TBL) trading system uses three different time frames when selecting trades. We have often seen a different trend for each of those time frames – literally Authentic Kyle Brodziak Jersey , one trend is up, one trend is down and the other trend is sideway!
So what is a trader to do if they want to trade with the trend?
Actually, it is pretty simple. Trend is a relatively meaningless term unless it is associated with a time frame – and also with a time period. For example the Bollinger Bands used in the TBL system are set to 21 periods – which mean that the moving average is calculated over a span of 21 price bars. Each new price bar is added at the end of the calculation and one is dropped from the beginning of the calculation. The period of the Bollinger Bands are, therefore Authentic Alex Pietrangelo Jersey , 21 bars.
So what about the price bars? TBL uses only tick bars to create charts. Each bar represents a specified number of ticks, rather than a specified amount of time. For trading FOREX, the TBL charts for the EURO are currently 8000 ticks per bar for the primary chart – the other two charts are 800 ticks per bar and 80 ticks per bar. The 8000 tick chart will usually have about 10 to 12 bars for each day.
Given the above scenario it is not uncommon to see the trends be very different between the three charts.
So how does a trader make sure he has a friend in the trend? Easy, just select the time frame of the chart on which to trade that has the trend going in the direction of the desired trade. Obviously Authentic Paul Stastny Jersey , it is a bit more complicated than that, but it is still done very fast by visually analysis. The key is the trade duration – the trader must complete his trade in the shorter time frame that is opposite to the trend in the longer time frame before the trend in the longer time frame has a chance to reverse.
This rather complex sounding situation is really a snap in TBL due to the visual picture that the trader is always looking for as they select one time frame chart then another.
Trades constructed on the primary trading chart are usually longer duration trades, whereas the trades constructed on the shorter time frame charts are of shorter duration. The shortest duration trades, done on the very short time charts are often completed in only a few minutes Authentic Dmitrij Jaskin Jersey , sometimes even seconds!
So the lesson to be learned here is to select the trend to be your friend based on your trading prefe. Jerseys Free Shipping NBA Jerseys Cheap Cheap Custom MLB Jerseys Cheap Jerseys China Wholesale Wholesale Jerseys Wholesale Jerseys Cheap NCAA Baseball Jerseys Throwback MLB Jerseys From China Wholesale Jerseys China Nike NFL Jerseys Cheap