Time Cycle Correlation and Trading
К оглавлению1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1617 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118
119 120 121 122 123 124 125 126 127
One of the characteristics that successful short-term traders share
is an understanding of time cycles and periodicity. An intraday
trader should know the most statistically favorable bullish and
bearish times to trade. For example, on an annual basis, November,
December, and January are typically the most bullish months of the
year. Conversely, the most bearish months of the year tend to be
September and October, followed by February and June. If a strong
bear market is in progress, it will tend to end in October. Bear market
trends that begin in February or March tend to end in June. In
some cases, summer rallies tend to end in June. Always know where
you are in the annual cycle. Identify whether you are in a statistically
bullish or bearish month. Of course, these rules of thumb do
not always hold true, but annual cycles typically manifest themselves
over and over again.
The best-performing days of the week tend to be Monday,
Wednesday, and Friday. Currently, these days seem to have the
most bullish tendency and tend to trend strongly. Another interesting
and potentially profitable bit of statistical information is that the
most bullish days in a given month tend to be the first three days
and the last four days of the month.
The time periods that exhibit the most definable trends on the
S&P 500 and the Dow Jones are 9:30 to 11:00 A.M. EST and 2:30 to 4:00
P.M. EST. Of particular importance are the last 45 minutes of the trading
day. It is during this time frame that trend will either reverse or
continue trending in the direction of the previous hour.
One of the characteristics that successful short-term traders share
is an understanding of time cycles and periodicity. An intraday
trader should know the most statistically favorable bullish and
bearish times to trade. For example, on an annual basis, November,
December, and January are typically the most bullish months of the
year. Conversely, the most bearish months of the year tend to be
September and October, followed by February and June. If a strong
bear market is in progress, it will tend to end in October. Bear market
trends that begin in February or March tend to end in June. In
some cases, summer rallies tend to end in June. Always know where
you are in the annual cycle. Identify whether you are in a statistically
bullish or bearish month. Of course, these rules of thumb do
not always hold true, but annual cycles typically manifest themselves
over and over again.
The best-performing days of the week tend to be Monday,
Wednesday, and Friday. Currently, these days seem to have the
most bullish tendency and tend to trend strongly. Another interesting
and potentially profitable bit of statistical information is that the
most bullish days in a given month tend to be the first three days
and the last four days of the month.
The time periods that exhibit the most definable trends on the
S&P 500 and the Dow Jones are 9:30 to 11:00 A.M. EST and 2:30 to 4:00
P.M. EST. Of particular importance are the last 45 minutes of the trading
day. It is during this time frame that trend will either reverse or
continue trending in the direction of the previous hour.