Multiple index action value Time frame is the key to a strong reversal commercial units. These occupations have a high reward potential while using a low risk of failure-loss. You may have heard it is not possible to pick market tops and double bottoms. If you are trying to pick market tops and double bottoms looking at a chart a single time frame that would be true. But if you're using multiple frames index action value time (MTF) you can find and make these professions powerful Reversal.
The secret of knowing when these tops and double bottoms occur market shows the interaction of different value 8 lines of action. Suppose you sell in a 5-minute chart.When the row of 5 minutes is a long way over the line daily values is high that the upward price movement is more than likely that a substantial likelihood is that a strong downward reverse trade happens then.
The same thing is true when the row of 5 minute is a large distance below the daily price bar. Now the odds are high that the downward price movement is over. Is a high probability that a strong upward reversal trade happens then.
The interaction between the 8 row values timeframe is the primary signal confirmation validates these patterns Reversal. When initiating upward price is over and you begin to see the passage 5 minute value line below the row 15 minutes, and then the line 20 minute, etc., which represents the distribution of the upward trend. It is important to understand that the interaction between these different timelines that stacks the odds in your favor.
Mark secondary confirmation to distribute these reversal comes from the time Volume index fragmentation. Trading volume is like the gas pedal of a car. Take gas to accelerate a car and gets commercial volume to speed up the movement of prices. When the row of 5 minutes is a long way over the line daily values, plus the time segmented volume shows lack of purchasing volume necessary to push upward movement in prices, this is when you have a high probability that a strong downward reverse trade.
What opportunities this inverts and why it's so powerful opportunity reversal MTF?Price movement in the market caused by supply and demand.When the distance from the row of 5 minute lower on the daily price is extreme, and shifts the volume purchase sale volume, such as salespeople make a reversion to trade in the Middle, you'll get these opportunities great Reversal. the root is the amount you purchase volume vs. sales volumes.The volume is the acceleration program that directs price movement.
The MTF value index and fragmented action time give traders the Volume indicator "edge" to know when these purchase spikes and double bottoms is high probability reversal professions. Adding in some technical skill in reading the chart patterns like double double bottoms, head and shoulder pattern, etc.and can I trade in these units trade powerful reversal with confidence using this approach MTF is counter trend trading at its finest.
Mark David Johnson is a full time developer TradeStation, trader and trading coach with customizedtrading.com. personally, he has developed more than 60 strategies and over 200 indicators for platform TradeStation. passion of the Mark is to match the client trading style with the best possible trading tools for them.
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