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The "Timeframes" Ducks


"Why am I here? Why are you here? Why is anybody here? I think it was Jean-Paul Sartre who once said . . . how do you spell Sartre?"


Toddo often speaks of waiting for the fundamental, technical and psychological ducks to align before pulling the trigger on a trade. Each of those elements of course encompass many variables which must be considered to determine the relative position of each "duck".

When considering the technicals, looking at the same ticker in different time frames can be very helpful in judging how strong an influence the chart might be in the overall scheme of things.

Right now the SPY shows a pretty interesting coincidence: simultaneous Dandruff patterns on the 10 min., 60 min. and daily charts.

SPY 10 min chart

SPY 60 min chart

SPY daily chart

The right shoulder of the 10 minute chart is not yet well formed and with the stochastics hooking up, it just may need a few more bars. A similar condition can be seen on the 60 minute chart. The daily looks just about complete and the stochastics are supportive of an impending breakdown.

Having patterns on different time frames supportive of each other is meaningful because it aligns different styles of traders on the same side of the trade. They all see a potentially bearish pattern and they are all ready to pull the trigger in the same direction at approximately the same time.

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