Disliked...but to look at the STRENGTH OF THE MARKET IN RELATION TO TIME AND PRICE, higher time frames give you a better pictureIgnored
a) When a larger bar of data is new, the smaller time frames give you the best picture.
b) When the smaller bars of data are old, the larger time frames give you the best picture.
It is somewhat counter intuitive, but if you study it, you can build an entire trading system based on those two facts alone. And, a pretty good one, too.
The question is: Who is in control of the big show?
- The Multi-Year Bar
- The Annual Bar
- The Quarterly Bar
- The Monthly Bar
- The Weekly Bar
- The Daily Bar
- The Hourly Bar
etc.
etc.
- Who controls the Frequency of swing high to swing low?
- Who controls the cycle run-time of the Frequency? (how long it lasts)
It is all about Frequency of Cycle from Swing High to Swing Low. And, it always has been.
Here's a pic of the EURUSD from June 1st, 1990 through Today.
http://www.freeimagehosting.net/t/502d4.jpg
Highest High = $1.6018
Lowest Low = $0.8225
That's a 7,793 pip range across an 11 year cycle time. The EURUSD has been volatile in the Annual Bar ever since the previous Highest High of 1995 was taken out at $1.4535, yet since 2008, we've never seen the $1.6018 level. All the while, the pundits are proclaiming that the sky is falling down on the EUR, yet the EUR is doing nothing more than its empirically driven history indicates that it should be doing right now.
At some point, we will revisit $0.8225, or near that level. Just like at some point, we will revisit, $1.6018, or near that level. The question is: What is the EUR doing right now?
Answer: Falling.