One of the most common questions that I get on this channel is Charlie what is the best time frame for swing positions And this is a important question because the time chart that you use will largely determine how you calculate your support and resistance level, your trading risk, your risk versus reward ratio, as well as figuring out whether or not a stock is a good deal. and I never like to keep people waiting. So let me just tell you the Short Suite simplified answer: You should be focusing on a time span that a matches or exceeds the duration of your position and behold, your previous pattern for several periods. So my goal by the end of this video is for you to understand exactly which time frame you should be focusing on when swing trading within the stock market.

and you should also have a complete understanding of how great it feels to hit that ravishing like button. And honestly, it feels great. You should try it. So to start when we are looking for a swing trade, the first step that we take is identifying a pattern or some sort of early warning sign of upward potential that we are looking to take advantage of.

For example, if we are looking at Facebook and we identify that each acceptance of an upward direction over our directional red SMA line would have been a good entry point just based on previous patterns, we could then identify the time span that we should focus on. If we are trying to play off this pattern of up trending after rejecting downward directions, then it makes sense to figure out ways to boost our upside while minimizing our downside and then take an average time span to figure out how long it will take if that pattern continues. So for this find in upon over-salted selling out an overbought would have been a good strategy about 80% of the time based on previous patterns. At this point, buying in upon oversold and holding out until overbought would have still ultimately created games.

But the downward reversal under both our directional SMA and short term blue SMA line would have been a point of validation for us to exit our position and then buy back in upon oversold strength. So yes, this pattern of over bind and over selling combined with directional strength has been established and we can now take a time sample to predict how long it will take to repeat this pattern. And this is not something that you need to be dead-on with, but you can be if you want. So it takes about 15 days by eyeballing it.

it takes about fifteen days to recover from oversold to overbought. Understanding This means that we can plan for a position that lasts about fifteen days. It doesn't mean that it has to last that long did. Hey, Perhaps it won't last that long, but it doesn't matter.

This is how we figure out what chart is most relevant to us. and if we identify it as a 15 day pattern, that means the time chart that makes the most sense will be the one that displays that 15 day pattern. And that, in short is this 180 day chart. For example, if we were looking at the intraday chart, we won't even see the pattern be realized because this is a 15 day occurrence happens every 15 days.

So how does it make sense for us to focus on the one day chart? It doesn't. What about the five day chart? How does it make sense to use the five day chart when the pattern happens every 15 days? And what about the 20 day chart? Does it make sense to use the 20 day chart when we only have one previous pattern confirmation on this chart since it only accounts for 20 days? No. In this situation, it makes most sense to focus on the time chart that holds the pattern and display several previous pattern confirmations of that pattern being realized. And that happens the BP 180 day chart.

So it makes the most sense for us to focus on the 180 day chart to execute this train. Okay, so what about for Tesla Now we have a consistent, downtrending, powdered with failed upward directional attempts. and then Boom! we have a trend reversal and a sustained upward direction over on red directional SMA line. Does it make sense to focus on the 180 day chart? When this new trend just got started a few weeks ago, this new trend just started and any new price action we were trading off of.

using this new trend, we'll need to place the heaviest emphasis on this new, consistent up trending pattern. Using a long term chart to determine much shorter price action is very similar to planning for retirement for a newborn baby. There is some advantage to taking it into consideration in both cases, but it doesn't make sense to focus on it as a priority. Don't prioritize retirement for a newborn baby.

It's the same thing here. For example, buying in upon price strikes after holding direction as support or rejecting down with Versalles is a swing strategy here on our 20-day chart, but on our 180 day chart, we simply don't have that. You don't have a previous pattern of that and this shows you how important it is not to only pick the time chart that holds the duration of your position, but also to pick the time chart that shows a previous pattern conformation as well. We loved previous patterns, so going back to my newborn baby analogy, the advantage of using long-term charts isn't a focal point, but rather is a way to boost your elevating factors you may have determined.

It makes sense to focus on the 20-day time chart for your swing position, but you can reference your long-term 180 day chart. Do you figure out just how desirable your position is in the long term? For example, if you have two stocks with great setups on the 20 day chart, but one of them is also undervalued long term or has some sort of other desirable trait long term, it'll make sense to prioritize that one that has the advantage long term. But again, when taking time charts to focus on, we need to find the chart that holds the pattern. The previous pattern and everything else on the other tide charts are there to evaluate certain strengths and weaknesses also known as elevated versus deprecated factors.

So here is another example. let's take a look at CDM Howe Now CDM O has had a solid upward trend over our directional SMA Lining continues to over by aggressively and it makes sense to focus on this time chart if we are looking for a week-long trade. But the question becomes at this point, how significant is this uptrend? What does this mean in the longer term and opening at the top time chart, we see that CDM O--'s breakout is a break of a six-month downward trend. Okay, so you do get to see in this situation how important it is to reference other time charts to sort of get the entire context of the situation that you're about to employ.

Here is another example. Labview has this pattern of rapidly over buying. After holding directional strength, you see buying in upon the holding of the price. Direction over our red Direction lesson.

they line each time would have allowed us to hold out until overbought and would have resulted in a profit each and every single time. Now, quite clearly there is more to actually taking a position, but identifying this pattern is key. It's key to understanding which time chart we need to focus on. And while you can execute on this time chart, doesn't it make more sense to execute on the time chart that focuses on this period since this is the period at which we recently started.

The new trend executed upon this time chart allows us to way or not we are oversold in a more relevant way because it's not weighed down by long to turn price action. But the key is that we still have a previous pattern conformation. We loved previous pattern confirmations, so that is why. I Emphasize picking a time chart that is most relevant to your position but also displays your previous pattern.

So in summary, you should focus on a time chart that a matches or exceeds the duration of your position and B hold your previous pattern for several periods. Okay, so I also want to take a moment to talk about how certain time charts can be extremely relevant to emphasize the fact that you need to make sure that you choose the right time frame with you guys. our long-term chart shows upward potential from K 6 to 23 and looking at our poultry current trading price of 12 97. That would make us think that this is a Xuan of a position.

But that's not the case in this situation. A long-term time chart is almost completely irrelevant because this is a leveraged ETF with a decay factor. That means that technical analysis on the long term chart at least done traditionally, is going to be almost completely irrelevant, whereas the 20-day chart is actually relevant. So this is something that you need to be aware of.

Okay, so with everything that you have learned in this video, let's see if you can figure out what time chart to focus on for SL s let's say we are attempting to take advantage of this upward direction over our red directional SMA line. We love buying into price strikes and directional strengths, so we are going to be waiting for a confirmation. But what time chart do we focus on? Do we focus on this 10 day chart? Do we focus on the intraday chart? Do we focus on the 5 day chart? Do we focus on the 20 day chart? Or do we focus on the 180 day chart? Well, I'll give you 10 seconds to figure it out and then we'll go through each and explain why or why we wouldn't focus on each chart. you.

Okay, so let's start with the intraday chart. We are planning a swing position off of the recent longer-term upward direction, so does it make sense to focus on the intraday chart? Well, you could make an argument for increasing your elevating factors by using the intraday chart to get a more precise entry point. for example, buying in upon confirmation of intraday direction. but this cannot be B chart that we focus on because of the simple fact that the pattern that we are targeting is not displayed here.

The continuing uptrend Direction is not displayed here, so it doesn't fit the criteria of holding the pattern. Second, since this is a swing position, the intraday time chart does not hold the entire duration of our proposed position. And going back to our two criteria, it makes sense of. This fits neither of our requirements for a main time chart to focus on.

So what about the 5-day chart? Does this one make sense? Well, we have the upper direction and we have the accurate duration. So yes, this one makes sense. but let's see if there's a better one. Does this 20-day chart make sense? Well, we have a downward direction for most of the chart and then we have a reversal over our directional SMA line and this is great for finding context or significance.

But again, going back to our newborn baby retirement planning analogy, this just does not make that much sense to focus on. This is part of a new trend and thus, this time chart is Way too long. And if the 20-day chart is too long, you already know that the 108 a chart is too long. So what about the ten-day chart? We have upward direction towards the end of the chart and it holds the entire pattern and duration.

This almost works, but the problem is that for most of the chart, it is still down trending. This would be fine if it was the closest time chart to hold our pattern. but since we have the 5-day chart, this chart just does not make sense. So yes, the 5-day chart makes the most sense because the pattern is the most distinguished in this chart and also has the potential position.

and also the potential position matches the duration of the time chart. So it hits both of our criteria. So did you get these answers? Let me know in the comment section below and make sure to take everything you learn and actually go out and practice it using a simulated platform they sure far away. To guarantee that you learn nothing from these videos is to just watch them and never practice or apply them to anything.

So make sure that you actually take an action based approach to learning in these videos so that you can make yourself a better trader. Passive learning is only half the battle so do not be passive with this stuff. And of course, if you have any more questions, feel free to reach out to us on the Zipp Trader Circle Facebook group or comment below. We also have a training tutorials, playlist, and a bunch of other stuff on the zip Trader homepage.

If you need more resources to help you continue to learn, have a good day folks and I'll see you in the next video.