Thread: Market timing
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Old 01-19-2007, 02:39 PM
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Technical indicators do somehow use the Time axis in its calculation. The values of indicators are greatly affected by time. Although indicators don't read time as ##:## AM, it does use the period of time in its calculation. Period of time itself involves two points on the time axis. We instruct moving average to smoothen the prices to fit your time period. We instruct RSI, MACD, CCI and such to draw the their values from both Price and Time series.

What those indicators miss are the date and exact time read as ##:##:##. I've been exploring around these two variables (date and exact time). It's a motive that I created the Economic Calendar. Price simply doesn't move randomly during the days; it moves at the right timing. For example, on the first Friday of every month at 8:30 ET (13:30 GMT), all currency pairs will go rage violently, possibly 100 pips to one direction. I can employ various strategies to profit from this pattern. Gann's Fibo Retracement is one of my favorites.

In brief, timing is basically very important. Price is just one side of data. With both timing and price data, you'll leverage the profitability of your system.

I recommend "The Secrets of Economic Indicators" book by Bernard Baumohl. The very minute you read it, you'll see how and when price fluctuates at what volatility. You'll unlock the secrets to timing profitable trades.

P.S. I apply my strategy on timing to the Predictor in Economic Calendar.
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Last edited by scorpion : 01-19-2007 at 02:44 PM.
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