Trading Insights

Trading Insights

When price and time indicators intersect

Trading Insights
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When time indicators and price indicators intersect it's a very remarkable trading setup.

Gann spoke about the confluence of those two universes - stating, "there is a definite relation between time and price".

When the time indicators in the Flux generate a signal, it's based off of thousands of bars of analysis - no small feat. That small green or red dot signifies a distillation of many movements. The computer is in essence saying, "this dot is here, because this is usually when the market goes up, or down. Now. Not 6 minutes from now. Now. Time indicators are great in that sense.

Price indicators are generally okay - but when you do the same data mining on price as you do on time, the answer is more meaningful. Instead of looking at floor trader pivot indicators, or murrey math lines, you're looking at or asking the question, "where has price been reflected in the past?" to your price indicator. The FPC accomplishes that task in the Flux toolset - and brings back a line to show you where those major reflections have occurred in price, over and over again.

Look at this chart from today's AUDUSD:

See the intersection of time (green) and price (red line) above?

Think about the psycological implications of the time indicators, and price indicators, converging here.

You are less prone to risk more - as it should go up - now. And not go down, much lower. The red line serves as a backstop - a launchpad. The green dot serves as a countdown.

We light the rocket, and stand back, and expect a move. It's not so much a guess as a logical expectation of a behavior pattern. When we light the rocket - it usually goes up.

When we see a green dot, above a red line, it usually rises (price).

Most traders aren't using any time indicators, and focus mostly on price indicators.

As you can see from the above - not paying attention to these repeating behavior patterns in time is a self-induced blind fold.

The information can be found, and known, and applied pragmatically.