Home
Futures Trading
BASIC THINGS 1) Basic Instructions
2) Discount Markets
HOW TO TRADE How To Trade
MARKET MECHANISMS 1) Basic
2) Advanced
MARKET TOOLS 1) Charts
2) Volume Profiles
3) Trading Indicators
THE SYSTEM 1) Trading System
2)Long-Term analysis
3)Short-Term analysis
3) Trading Analysis
MARKET TIMING 1) Candlestick Charts
2) Candles Patterns
3) Chart Patterns
4) Continuation Patt.
EMINI TRADING Emini Trading
E-Mini System
O/R System
Dow Futures
FOREX FX Basics
Forex systems
FX Introduction
COMMODITIES 1) Commodities
Commodity System
Oil Futures
MANAGEMENT (Risk, Mind & News) Risk Management
The Trader's Mindset
Market News
SIMULATOR Trading Simulator
FUTURES BROKERS 1)  What to look for
2) Futures Brokers
TRADING PLATFORMS Platforms Reviews
IMPORTANT Cycles
TimeFrames Analysis
"Super Tech Analysis"
ARTICLES Part 1
CONTACT, RESOURCES, ETC Contact/About Me
Resources
Disclaimer
CHARTS and QUOTES Charts and Quotes
 

The best trading system you will find. The TimeFrame Analysis

So, the best trading system is the Time frame Analysis. Well ok, let's continue our discussion from Timeframe analysis as the best of all day trading systems.

Remember, at the end, What we need to be aware of is that The Market is just a mechanisms of forces (money) acting with different time horizons, since they all have different objectives. Understand this and you have the best trading system in the world.

Now, our job is to analyze charts, and data like news, from the BIG Picture or broader perspective (weekly charts,daily,etc) down to the most narrower charts (5 minutes chart, 2 minutes chart, etc) and vice versa...But...Why vice versa?

Because, all trades begin as a scalp or an "small profit trade", which means, that you must also be aware of what the Very very short-term participants are doing.

Now my friend, I know you might be wondering, How Do I do this? well...

Although there exists something called Depth of Market, which shows you the Bids and Offers currently to be made in The Market (I will expand more on this later), another good way I have found is using candlestick patterns in short-term charts.

We do this in order to to determine a "place" of supply and demand level where all market participants both long term and short term coincide in opinion, which means, a Supply or Demand level is formed in The Market by all participants.

In The Futures Trading How To system we analyzed the market using the following participants or forces, which form the time frame analysis.


Let's see This Forces in Detail:

day trading systems


  • Long term participants:

    Like Investment Bankers, Value Investors, Big Hedge funds, Countries, Commercial firms (like a big manufacturing firm), etc.

    They have the power to move The Market, either buying or selling a security. They might do one, two or 3 trades in the same asset or security in one year. They are more fundamentally oriented, which means: they know how to value companies assessing balance sheets, income statements, the study of public records and filings by the company, their management, etc.

    They also analyze and estimate the economy as a whole, which countries are the best to invest in, etc. They very well know that the best trading system is the time frame analysis. They do it by assessing large amounts of data to invest according to what the BIG picture or context tells them. (The Growth Domestic Product, balance of payments, expected growth of countries and companies, etc)

    They represent, in the chart above, The black line. Normally their holding period is for years or months, they might use monthly and weekly charts, together with fundamental analysis, to asses the markets and the economy. The Supply and Demand Levels they "leave trace of" in charts are the MOST strongest levels of Supply and Demand in the Market

  • Hedge funds, Investors, Small Commercial firms who are Hedging, Swing traders and firms with less money than the very very long-term participants.

    At the same time less powerful players (or with less money) are trading and investing in the daily chart with support and resistance formed in weekly charts. They might also use a combination of fundamental analysis with technical analysis. They represent the blue dotted line in the chart above.

  • Day traders and Scalpers:

    At the same time Day traders and scalpers (or the ones who open and closes positions in the same day) use the 30 minute chart and under.

    These market participants are trading and doing business with the support and demand levels formed from monthly,weekly,daily,4 hours ,60, 30, 5 minutes charts etc...by Long-term market participants or people "with money". They are Technically oriented, they trade with the "flow".

    They represent the red line in the chart. And they also know that the best trading system is the Time frame analysis.

    From this we can conclude that all market participants rely on time frame analysis as their best trading system since they differ from one another in just two things:

    The amount of time they hold an asset and the way they analyze that asset.


    Click here to go to go back from best trading system to Timeframe Analysis ( day trading systems )

    Click here to go to back to Futures trading how to


  • Essential Tools For Traders

  • Excellent Trading Lessons - FREE

  • Instant Analysis Of Where the Market Could Go Next

  • Tools to Understand the Markets

  • Trading System

  • ion in Spanish

    Reader's Testimonials

    Praveen from Miami, Florida.

    First I must congratulate you on a very successful and useful site. It is practical and really helps to trade with confidence. Excellent work. Trust me when I say this...

    I have gone through thousands of sites before I came across your work and indeed it is commendable. I have one question for you. After drawing support and resistance lines on the 30 and 5 minute chart, do you then focus on a 2 minute chart and take your trades based on candlestick patterns?

    Robby from Indonesia.

    WOW, very very good materials. I've been studying market profile and supply and demand for about 2 years now. So far, I found the materials in your website to be very generous.

    Jose, Las Palmas, Gran Canaria, España.

    Hello, i only want to say you thank you for all this free information, for me that I'm a begginer all this information is pure gold.

    Thank you very much.