Apr 042009

How Day Trading Works According to Einstein

Posted by Barry Burns in Day Trading, Forex, Futures, Investing, Psychology, Stocks, Technical Analysis, Trends, Video tags: Chart Intervals, Day Trading, day trading futures, Forex, Futures, how day trading, Stocks, Technical Analysis

Welcome back. Enjoy this latest article and then scroll down and please leave your comments/reactions at the bottom of this post. Thanks for visiting again!



One of the most common questions I’m asked is how day trading trends are to be evaluated when looking at more than one time frame.

The day trader will be looking at a chart and see the trend is up (for example), but then they look at a chart of another time interval and they see that it is down.

This is very confusing and they ask me which is the “REAL” trend?

I hope this video will help bring clarity to the issue not only for those who are asking how day trading trends are determined, but also for swing trading and even investing trends.

One extra comment not addressed in the video – while I look at the trend on a higher time frame, I actually find it more important to make sure I’m trading in the direction of the momentum and cycle of the higher time frame. These are faster energies and allow me to trade more frequently than if I waited for the trend to align on both time intervals concurrently.

As always, please leave your comments below after viewing the video.

Please Post This Entry to Your Favorite Social Bookmark: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Facebook
  • Google
  • Furl
  • StumbleUpon
  • Technorati
  • blogmarks
  • Ask
  • Bloglines
  • Google Bookmarks
  • Live-MSN
  • Reddit
  • Squidoo
  • YahooMyWeb
  • LinkedIn
  • MySpace
  • TwitThis
  • YahooBuzz
Related Posts

This entry was posted on Saturday, April 4th, 2009 at 9:00 pm and is filed under Day Trading, Forex, Futures, Investing, Psychology, Stocks, Technical Analysis, Trends, Video. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

28 Responses to “How Day Trading Works According to Einstein”

  1. charles locklin Says:

    April 5th, 2009 at 8:22 am

    thanks,barry, for the reminder of looking at
    the bigger picture this is easy to overlook
    when concentrating on the developing pattern
    on the timeframe you are watching.

  2. Roland Trudeau Says:

    April 5th, 2009 at 10:15 am

    Hi Barry

    I enjoyed your vidio and the information given.
    This is the kind of stuff traders need. Thanks again.
    Could you please tell me how to download some of
    your vidios for my information library.

    Thank you.

    Regards

    Roland
    Forex Trader

  3. Barry Burns Says:

    April 5th, 2009 at 1:48 pm

    Hi Roland,

    Thanks for the kind words and I’m glad you enjoyed the video.

    The video is in flash format so I don’t think there’s anyway you can
    save the one on my blog. It’s also on youtube, along with others.
    Don’t think you can download those either, but you can check at:
    http://www.youtube.com/topdogtrading

  4. Don Says:

    April 5th, 2009 at 2:55 pm

    Barry,

    Thanks again for the time scale / fractal reminder for guaging the true trend of a stock or whatever one trades. This latest video puts me in mind of the comment that I’m sure we’ve all heard through the years about not being able to see the trees through the forest – I know I have. Stepping back to a larger time frame gives you that persepctive. As always, I appreciate your no nonsense approach to trading. I look forward to your next video.

    Thanks again!
    Don

  5. Dan Davis Says:

    April 5th, 2009 at 4:22 pm

    Great information. Barry, you are a tremendous mentor!

    Dan Davis

  6. A. Craig Says:

    April 5th, 2009 at 4:53 pm

    Ok, I’m still confused. If I’m trading the 2 minute chart, then I’m supposed to be looking at the 1H chart as my longer timeframe? What if I’m trading the 1H chart; do I look at the 2H or 4H chart for my longer timeframe? How far back do you go on the longer timeframes to determine which is the accurate trend, because even they will conflict. Why not just trade one timeframe and go with the trend on THAT chart?

  7. leonard Says:

    April 5th, 2009 at 6:08 pm

    Great video,thanks

  8. arvind Says:

    April 5th, 2009 at 8:55 pm

    barry burns, you are one of the very very few who are genuinely true in shedding light into the darkness engulfing the poor retail trading masses..

    i am sure you and your family will be blessed, with ??? $ and 100 % peace within, burns $ may be a necessity, so a minimal is required but surely it has absolutely no meaning in the absence of peace and love, at lleast that is what i feel..

    love you and your family and your team, i love you all for each one’s faith and sincerity in you, contributes to what barry is..

    arvind

  9. Robby Says:

    April 5th, 2009 at 10:01 pm

    Hope your doing well Barry. Great video. Take care Robby

  10. William Says:

    April 6th, 2009 at 3:33 am

    Basic and simple, just what is needed. Thanks Barry.

  11. minh Says:

    April 6th, 2009 at 11:59 am

    I’m a bit confuse when it apply your Video theory re to 2 different time frame. cause I find very seldom for 2ma in 2 different time frame are all angle up/down on the same direction. For example : today 4/6 EUR/USD 60min vs 5min chart on 15pm EST time, the 60min 50MA is flat at the time and the 5min 50MA is angle up. Can you please give me some clarity here. Dr Barry, and by the way I’ve been learning day after day by watching the course I purchased from you. Thank You.

  12. Nasir Khan Says:

    April 7th, 2009 at 2:12 am

    Thank Barry,
    I enjoyed your lectures / videos
    I understood most of it very well
    and i think the remaining will come with practical experience.
    Yes in your explainatin I couldnt find out information on how to rule a 50SMA LINE .
    Once again thanks for your beautiful explaination
    NASIR

  13. Neal Says:

    April 7th, 2009 at 5:39 am

    Please clarify: “while I look at the trend on a higher time frame, I actually find it more important to make sure I’m trading in the direction of the momentum and cycle of the higher time frame. These are faster energies and allow me to trade more frequently than if I waited for the trend to align on both time intervals concurrently.”
    As an example, do you mean that you are willing to go short off a 2-minute setup when the 60-minute is in a retracement cycle of an up trend?

  14. Barry Burns Says:

    April 7th, 2009 at 12:56 pm

    Hi Neal,

    Yes, that’s exactly what I mean.

    Barry

  15. Barry Burns Says:

    April 7th, 2009 at 1:00 pm

    Hi Minh,

    Yes, the trends do not align too often. But 2 things with regard to that:

    1. That’s why in the article I say that I find cycle and momentum to be more important than trend on the higher time frame. I’ll trade against the higher time frame trend, but I want to know where it is so it’s it’s just a retrace that gives me an expectation of what my risk/reward may be and where to exit.

    2. High probability trades are infrequent!

    Barry

  16. Barry Burns Says:

    April 7th, 2009 at 1:01 pm

    Nasir,

    The moving average is an indicator in most every charting software. Ask the support team that provides your software how to apply the 50 MA. It’s very simple once you know how.

    Barry

  17. Paul Says:

    April 8th, 2009 at 6:57 am

    Hi Barry!

    Just wanted you to know that you have taught me how to actually “see” what is happening on the chart. My trading has vastly improved using your information. THANK YOU!

  18. alex kelly Says:

    April 10th, 2009 at 4:44 am

    Hi Barry,
    Thank’s for making it so clear on how to look at charts with different time frames.
    Happy Easter to you and your family.
    Alex, Scotland UK

  19. FRANK Says:

    April 10th, 2009 at 10:05 am

    Good simple explanation, if only I knew what a fractal is.

  20. Festival of Stocks Number 136 - April 13, 2009 | Understanding The Stock Market Says:

    April 13th, 2009 at 11:11 am

    [...] Barry Burns presents How Day Trading Works According to Einstein posted at Top Dog [...]

  21. Barry Burns Says:

    April 14th, 2009 at 6:44 pm

    A fractal is simply a fancy term for a higher time interval chart.

  22. Top Trading Directory Says:

    April 15th, 2009 at 7:12 am

    Great comments about the video, I’ve learnt more good insights regarding the higher time frame, momentum and cycles, only wish that you would post more often Barry!

  23. Stuart Says:

    April 15th, 2009 at 5:18 pm

    Thanks for your simple explanations. I am currently doing your 5 day seminar. I have never traded and this is part of my due diligence before I do.
    Thanks again.

  24. Stephen M Says:

    April 23rd, 2009 at 6:00 pm

    Barry, Thanks for anohter interesting and insightful video. You do genuinely impart real knowledge that will help us to be better traders.

  25. Dougie Says:

    April 27th, 2009 at 8:42 am

    Thanks Barry!
    Yes a common question about trends. I have been asking it for ages.
    Finally, an answer that makes sense.

  26. James Says:

    May 2nd, 2009 at 6:22 am

    it also depends if you are taking a counter trend divergence signal or a trend continuation signal. if you counter trend trade on a 5 minute chart but you are in trend on a 15 minute chart what does that tell you? It tells you that you should be modifying your target expectations based on these different alignments. Also position sizing. high risk, low probability means small size or no trade. low risk high probability means largest size, bigger targets.

  27. Pierre Says:

    May 11th, 2009 at 5:20 pm

    Allo! Barry
    I apreciate your video..very easy to understand,
    even if it not in my language ..
    Thank!
    Pierre

  28. tran dai Says:

    June 19th, 2009 at 10:03 pm

    Your video is very helpful for my trading knowledge.

    Thanks Dr. Barry Burn

Leave a Reply

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

  • « Older Entries
  • Newer Entries »