Market timing is a misunderstood concept and it's a fact that most traders time their entry points incorrectly and lose.

Follow the simple tips below and you will find you can enter trades with better market timing, when the odds are in your favour and profitability is at its highest. Use the simple tips below and get better accuracy in your market timing and bigger profits.

Study the weekly charts

The weekly charts are a fantastic way of seeing the long term trend, yet very few traders use them.

Fact is you want to trade the long term trends, as these yield the biggest profits and there is no better way of identifying this trend than looking at the weekly charts.

Use them in the following way.

1. Look for the direction of the trend.
2. Look for important and valid resistance and support.

Daily Charts

Look for the trend again and if it lines up with the one on the weekly chart, you have potential trade in the making.

Look again for important valid support and resistance (sometimes they line up at exactly the same levels and these are best trades of all)

1. Look to place orders at break of support or resistance.
2. Don't jump in a trade in advance you are going to need confirmation.

Now we need to look at correct market timing.

Get the odds in your favour with oscillators.

Breaks of support and resistance identified in the above way have good odds of developing into great trends, if they occur at significant market tops or bottoms.

Note: Most major big trends occur from important market highs or lows, it's these high and low points you need to trade.A break from these points needs to be validated and then correct market timing is used to enter the trade.

The best way to achieve accurate market timing is to use the stochastic indicator.

The best momentum indicator

This indicator gives you the short term momentum and gives you a very accurate tool for correct market timing. If it indicates momentum in the trades favour as the break occurs its time to get in.

There is no better short term momentum indicator to time entry points and confirm a move and every trader should have it as part of their trading strategy.

Does this simple method work?

Yes it does and the reason is rooted in investor psychology.

Most traders like to time their trades and be early so they don't miss part of the move if it occurs. The problem is the "if"

If a move has not occurred why trade it? Don't impose your view on the market let the market tell you when its time to get in and this is reflected in momentum.

Don't guess, wait for confirmation and only trade in this way, this will help you avoid trading markets that are not trending strongly.

Keep in mind that these breakout points are important and if their supported by short term momentum then odds favour the trend will continue.

As the well known saying goes "a trend in motion is more likely to continue than reverse."

Trade infrequently

You won't get many trades per year trading in this way (the big moves only come a few times) but you will hit the trades with the greatest profit potential.

Market timing is all about getting the odds in your favour and catching the big trending moves and this simple method does exactly that.