Learn how to know when you have the best potential for placing a successful trade!     

    The key to a successful trade is to know what type of position to use, and when.  

    The first thing you have to determine is what type of a trade to place.  The price on a stock or index is always moving.  Most people think it is a 50-50 type of situation where it is either up or down.  But the truth is that there are 3 directions, up, down AND sideways!  There are different types of positions that allow you to capitalize on the different moves that the price makes, you need to know the characteristics of the different positions, and know what conditions need to exist to know which position to choose.

    The second thing that you must determine is the duration (time frame) of the move and position you are wanting to enter, whether it is one that is going to last for a few hours, days, weeks or months.  

    And then you need to know when the position will present the best reward with the least amount of risk.  There are times when the risk is not worth the potential reward, and you also need to know when not to place a trade.

    I started with the traditional charting methods.  But I was not satisfied with the shortfalls I found in the traditional approach.  There are literally hundreds of indicators and settings on the indicators that can be used, which makes the traditional approach much more difficult to use.  While it is possible to achieve success with the traditional approach,  I was not satisfied with how the many different indicators would quite often present conflicting pictures, where a strong argument could be made for both a bullish and bearish outcome.  I devoted myself to the study of the price, how it moves, and what truly represents strength or weakness.  After years of study, research and development I created an algorithm that visually displays the resulting strength or weakness in both the price and the trend.  The result is displayed in the Time Frame chart.  I created a chart that is much simpler and straight forward to use.  With the Time Frame chart you do not need to search for divergences or try to figure out which indicator is giving the best signal, with the Time Frame chart the price and trend clearly show if there is upwards strength or not.

    TimeFrameInvestor presents a one of a kind, easy to understand system with the Time Frame Analysis that will help you make the important decisions of what type of position would be appropriate, and when would be the best time to use it.  The Time Frame Analysis will show you how to create a trading plan that presents the best prospects for a successful trade.

    The Time Frame chart can be used on a short term intra-day interval all the way up to a very long term monthly chart.  It is when you view multiple time frames that you can gain a better perspective of the price and time relationship in order to develop a trading plan.  The Time Frame Analysis is the feature that presents 4 time frames, which allows for both the longer and shorter term perspectives to be examined, where reasonable expectations can be made as to what will happen not only tomorrow, but also next month.

    The core to the TimeFrameInvestor system is the Market Analysis reports.  Whether you are a short or long term trader, and use stock, options or futures, you will gain an advantage when you know what the markets are doing and what you can expect to happen.  Each day after the closing bell, the Market Analysis report is published.  The 3 major indexes, DOW, S&P 500 & Nasdaq 100 are examined with the Time Frame Analysis feature to present an amazingly accurate picture of what is happening in both the shorter and longer time frames, and what we can expect.  The Time Frame Analysis will also present some basic position possibilities that are showing the best potential and help outline a basic trading plan.  These can be used on the index trading vehicles of DJX, DIA, SPX, SPY, NDX, MNX & QQQ to capitalize on the expected moves in the markets.  

    It is when you compare multiple time frames that you are able to determine if a top or bottom is forming, or if the price is showing the likelihood that it will continue in the direction it has been moving in.  On Sept. 8, 2004 Broadcom Corp. (BRCM) was highlighted as a Stock To Watch.  The price had been falling for a few months, and was reaching a key very long term support level.  The weekly and daily time frame charts were oversold, and the daily chart was giving an early warning that the downwards move could come to an end.  After reviewing the different time frames, the following conclusions were made.  The price was too oversold to "short", and it had not formed a bottom and certainly was not moving up, so it was not one to buy as a "long", unless the price could move up thru the 26.25 to 26.50 area.  This left a position that involved selling a put spread to take advantage of a sideways move or a bounce as the best type of position to consider.  A move below 25 would show that the price would be setting new lows and to exit (stop loss) the position because it has not remained above the support level.  The trading plan has been laid out, to look at selling a put spread, specifically the 25 strike and buying the 20, with a stop just below 25.  The price did remain above 25, so a put spread that was sold for the Sept. or Oct. expiration would have expired worthless, resulting in a 100% profit!  It was also pointed out that should the price move above the 26.25 to 26.50 area that a shorter term upwards bounce would be starting.  On Sept. 13th (3 days later) the price did move thru that area, in the early stages of an upwards move that carried the price up to 34.  A 7 point gain for a short term "long" position.  This one stock presented 2 different opportunities, a longer term and a shorter term one.  The Stocks To Watch feature is for those that want to look for positions on individual stocks instead of just on the indexes.

    The importance of having a trading plan is so that you know when the position is not working out, and that you can exit with a small loss instead of allowing it to turn into a big loss.  This is a very important aspect in money management, because even though we would like to believe that every position would be a winner, the reality is there will be some that will go against you.  By using the Time Frame Analysis and waiting for the best opportunity to present itself, the number of good trades is greatly increased.  Instead of just guessing and hoping, the use of the strength and the perspective gained from examining multiple time frames allows you to be like a disciplined hunter that lies in wait for the best shot. 

Take control of you future!

The Time Frame Analysis that present both the longer and shorter term perspectives is ONLY available to the members of TimeFrameInvestor.  Act now to begin receiving the information you need to take control of your future.  

    With the CORE subscription level you will gain access to the members area of the web site where you can view the current and previous Market Analysis reports along with the intra-day updates.  To provide the best in timely notification you will also receive the Market Analysis reports and intraday updates via email when they are published on the web site.  You will also have access to the members forums where you can communicate with the TimeFrameInvestor staff and fellow members.  With the Time Frame Analysis you can now know what the markets are doing and what to expect, and when the markets are showing potential that can be taken advantage of in both the shorter and longer terms.

Please note that in Feb. 2004 ItsInTheCharts has moved to TimeFrameInvestor.com.

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