Ask Colin

As a position trader, what time frames do you use when you are assessing market risk, entry, exit in point & figure?

Time frame is not a simple issue with point and figure. The method is part art and part science. Essentially you want to work down from the largest time frame you can to see the big trends and then to the short term to plot your entry and exit tactics. In bar charting terms, weekly charts would be my main weapons for finding situations. Daily charts are used tactically to manage the trade. I try to be careful to avoid the trap of buying a big trend but being shaken out when a short term trend within it breaks down. A lot of it is experience and testing, for which there is no substitute once you have your plan.

Keyword: