Hello, traders, and welcome to another exciting software update from your friends here at TrendSpider! In this update, we’re pleased to release a new custom indicator to the platform specifically designed with TheStrat and price action traders in mind; The Full Time Frame Continuity Indicator! Details after the jump!
What is Full Time Frame Continuity?
Full time frame continuity refers to the alignment of price trends across multiple time frames. In practical terms, this means that for an asset, the price movement is showing a consistent trend (either up or down) across various time frames – for example, on the 5-minute, 30-minute, Hourly, and Daily. When all these timeframes show the same trend (all up or all down), the asset is said to be in full time frame continuity.
Adding The FTFC Indicator To Your Chart
From here, click the ‘Login & Import’ button and subscribe to the indicator. Doing so will add the indicator to your indicator list.
By default, the indicator is preset to identify the current state of the 30-minute, 60-minute, 4-hour, and Daily candles. The daily time frame is hard-coded and cannot be edited, but the remaining three options can be edited to a trader’s preferred time frames, with the 4-hour being the highest time frame available.
In addition, the indicator is viewable in the lowest time frame defined and below. In the default setting, the 30m is the lowest timeframe defined. Therefore, the indicator will be viewable on the 30m and lower.
How To Read The FTFC Indicator
The indicator is incredibly simple to read. If a candle is green, that means that there is full time frame continuity to the upside for all four time frames defined. If a candle is red, there is continuity to the downside. A grey-colored candle means that full time frame continuity does not exist at this time.
Why Is FTFC Important?
Understanding the significance of full time frame continuity is crucial for traders, as it offers several strategic advantages in the ever-changing landscape of financial markets.
- Confirms Trend Strength: FTFC is seen as a strong confirmation of the prevailing trend. If all time frames are aligned, it suggests a robust and sustained movement either higher or lower rather than a short-term fluctuation.
- Risk Management: It helps in risk management. Trading in the direction of the FTFC can be seen as trading with the ‘tide’ rather than against it, potentially reducing risk.
- Strategic Entry and Exit Points: FTFC can be used to identify strategic entry and exit points. Traders might enter a position when FTFC is established and exit when it breaks.
- Increased Confidence: With multiple timeframes indicating the same trend, traders can feel more confident in their decisions.
- Avoiding False Signals: Sometimes, short-term charts can show misleading trends. FTFC helps filter out these false signals by focusing on the broader, more consistent trend.
How Can FTFC Be Used?
Leveraging full time frame continuity in trading practices can be highly beneficial. The most straightforward way is using it to define both trend and momentum – taking long positions during periods of bullish continuity (FTFC Up) and selling/shorting during periods of bearish continuity (FTFC Down). The indicator, however, is not meant to be used in a stand-alone manner. It is best when paired with candle patterns, price action concepts, or other trend-following indicators. Here are some examples!
FTFC with TheStrat: For traders who utilize TheStrat concepts, reversal patterns like the 3-1-2d can be a signal that works in tandem with a full time frame continuity flip from bullish to bearish, as pictured below.
FTFC and Fair Value Gaps: If a Fair Value Gap is created during a period of FTFC to the upside, the pullback to the FVG can be a spot to consider a continuation trade.
FTFC With Moving Averages: In the example below, the price goes into full time frame continuity to the upside as it crosses above the exponential moving average. The price then goes full time frame continuity down when it crosses below the moving average.
Scanning for Full Time Frame Continuity
If you’d like to instantly identify names that are currently in full time frame continuity to the upside or downside, feel free to download these scanners to your account today!
As always, we hope you find this update helpful! If you have any questions, feel free to reach out to us via the ‘Contact Us’ button in the bottom left corner of your platform view.