Markets are often driven by three cyclical timeframes: short term trend, by events such as monthly options expirations; intermediate term trend, due to quarterly earnings announcements and FOMC activities; and long term trend, by corporate and governmental fiscal year budgeting and planning. Trends in different timeframes occur simultaneously. GuerillaStockTrading tracks these three timeframes on the S&P 500.
The short term trend usually changes often and are typically the realm of day traders and option traders. The short term trend can also be used to better time entries and exists on intermediate term trend trades.<< Back to Glossary Index