Does The Smart Money (Institutional Traders) Operate On All Timeframes?

Question:

I do have a question. 

You mentioned that all reversals are created by the banks. 

Would you say that this is on all time frames (5 min – 1 week)?  And would this mean that the (bank) daytraders are working on a different ‘operation’ than the (bank) long term traders or would it be a self supporting system across all time frames?  

Response:

Yes, this is correct, although not on every time-frame like you say…

There are three time horizons the banks will work off: the short-term, medium-term, and long-term.

The time-frames which best represent these time horizons are the ones which the banks use for trading. So, I would say the 1-minute and 5-minute are used for the short-term, the 1-hour for the medium-term, and the daily for the long-term.

All the reversals you see take place on these time-frames are caused by the banks either placing trades, closing trades, or taking profits.

I think the day traders and long-term traders are working together; it’s just that they have different objectives in the market.

Ultimately, the long-term traders are the most important because they are the ones who have the biggest trades placed. So, the day traders will have to operate in a way where they know they’re not jeopardizing the positions placed by the long-term traders.

At the same time, they’ll help push the market to the points where the long-term traders want to get trades placed, while also making a profit on their own trades…

Hope this helps

PAN.

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