subject: A Simple Powerful Stock Day Trading Tip Using Multiple Time Frames [print this page] Why is this pattern so effective in picking out great trades? In the case of long trades, significant new buying activity would have to occur in the higher time frames for the shorter term 20-period moving average to cross above the longer-term 200-period moving average. A moving average crossover on two different higher time frames is clear and compelling evidence that a bullish change in sentiment has occurred. Apply the reverse logic for short trades.
A Simple Powerful Stock Day Trading Tip Using Multiple Time Frames