I’ve had a few emails and comments that a Dual Time Frame Momentum setup did not result in a market reversal. Any technical analysis will “fail” whether it is a support/resistance projection, momentum strategy, pattern break etc. As I say over and over again in the book, the purpose of all technical analysis is to “identify conditions with a high probability outcome and acceptable capital exposure.”
The Dual Time Frame Momentum trade filter will help identify markets with a high probability of making a reversal AND a specific stop point in the event the market does not make the reversal. This is absolutely the best that can be hoped for.
Employ the Dual Time Frame Momentum Reversal filter as described in High Probability Trading Strategies and you will find it will help to keep you out of marginal trades, often nail a reversal within tickes and have very minimum and acceptable losses when a market does not reverse.
I like 5 time frames for FX: day, 240, 60 ,15, 3.
I prefer 3 units one take on 15 min reversal;
one on 60 min reversal or bed time and one hope for the best.
THANK YOU for your book MARK
Dear Sir,
Thanks for a very wonderfull book called High Probability Trading Strategies , it helped
me a lot in imploving my trading system.
I have a query, since i am completely unaware of Elliot theory, i need help,
You havd mentioned that correction should have minimum 3 swing or ABC type.
I need to ask in dual time frame such as daily / 60 min. chart or 30 / 5 min chart,
where does this correction or ABC pattern should take place, should it be on higher time frame such as daily or 30 minute or lower time frame that is 60 or 5 minute.
Because whenever i had traded a correction it turned out to be trend reversal as a result i am continously getting my stop loss hit.
Thanks
Randhir Gaikwad
Cell – +91 9867124991
Mumbai, India
Randhir: The patterns are made on all time frames. You might want to study about Elliott waves such as Pretcher’s book, to gain more understanding of smaller/larger time frame patterns and how they fit together. Generally, look to the pattern of the smaller time frame to help you identify the probable end of the pattern of the larger time frame.
i have one question about high time frame momentum.for example,High time frame is weekly,i.e.,weekly Dtosc is OS zone and Daily Dtosc is Bullish reversal,then i think it will be better that we should do trade set-up in 60M chart.
pls comment it.
This would be a triple time momentum setup. It is not necessarily better to go down to the 60m but it is certainly acceptable. I use three time frames all the time. However, the more short the time frame the more “false” signals you will get. If using the weekly-daily, I would then use the 240 minute.