Understanding Time Frame Continuity & Uncoupling Strat (Tensho III)

Sep 18, 2024

Strap Beginner Series - Lecture 3

Overview

  • Focus on Time Frame Continuity and Uncoupling.
  • Last session covered Broadening Formations and Price Expansion.

Key Concepts

Time Frame Continuity

  • Definition: Aligning all time frames to follow the trend.
  • Importance: Contributes to a higher probability of a successful trade.
    • "The trend is your friend."
  • Application: Applicable to various trading styles:
    • Scalpers
    • Day Traders
    • Swing Traders
    • Long-term Investors

The Four C’s of Time Frame Continuity

  1. Control: Who is in control at the moment?
    • 60-minute (or 65-minute) time frame is crucial for control.
  2. Confirm: Larger time frames should confirm the trend observed in smaller time frames.
  3. Change: Indicates a change in time frame continuity.
    • Often seen at the top/bottom of broadening formations.
  4. Conflict: When different time frames show conflicting trends.
    • Example: Hour is red, but day is green.
    • Avoid trading during high conflict.

Uncoupling

  • Definition: Different time frames become independent from each other.
  • Importance: Helps to understand different trader groups’ actions:
    • Monthly, Weekly, Daily, Hourly participation groups.
  • Process: Uncoupling happens progressively (e.g., second day uncouples daily from weekly).
  • Benefits: Provides more reliable information about market sentiment.

Trading Tactics

  • Trend Alignment: All time frames should ideally be in line with the trade direction.
  • Entering Trades:
    • Enter when smaller time frames align with the overall trend in larger time frames.
    • Look for actionable signals like reversal patterns.
  • Conflict Management: Avoid trades where time frames are not in confirmation.

Practical Example

  • Use of bar rewind feature to illustrate coupling and uncoupling of time frames.
  • Understanding Coupling/Uncoupling:
    • Visualize how different time frames align over time.

Q&A and Additional Information

  • Open for questions during pauses in the lecture.
  • Future sessions will address TTO (Time and Time Out) and other topics.

Closing Remarks

  • Recorded lecture available on YouTube.
  • Encouragement to leave questions or topic requests in comments.

Note: These notes summarize key points about time frame continuity and uncoupling from the lecture for future study and application in trading scenarios.

Full transcript