Find out how the timelines can help you identify best investments according to your risk and commitment appetite
What is a Time frame
Time frame refers to the amount of time that a trend lasts for in a market, which can be identified and used by traders. It is generally associated with the duration of the investment.
Time frame in Cycle
To facilitate trading decisions, “Cycle” takes into account the three-time frames namely, Short term, Mid-term & Long term and uses it in various following contexts:
Context | Short Term | Mid Term | Long Term |
Trading frequency | Weekly-Monthly | Monthly-Yearly | Yearly |
Price range move | 100% | 100-500% | 500-1000% |
Stop-Loss | 25-30% | 30-40% | 50% |
Risk Profile | High | Average | Low |
Investment Duration | < 1 year | 1 year-3 year | 2 years-10 years |
Reversal | Previous Day | Previous Week | Previous Month |
Trading under various time frames
“Cycle” conveys signals for every stock against all three respective time frames i.e. short term, mid term & long term. The signals will essentially be BUY, SELL or WAIT.