Traders often fall into the trap of believing more is better—more indicators, more tools, more complexity. In my experience, the real edge comes from narrowing your focus. That’s why I rely on what I call the Trading Trifecta: three types of data that give me a complete, confident picture of the market—price, time, and momentum.
This approach isn’t about being minimal for the sake of simplicity; it’s about choosing the most meaningful data that consistently offers clarity. Here's how each element plays its part.
Price: The Market's Voice
Every technical analysis method starts with price. Whether you’re trading stocks, futures, or currencies, it all begins with the raw numbers: open, high, low, and close. This is the language of the market—its most honest output.
Studying price action gives you the foundational understanding of how buyers and sellers are interacting. It’s what W.D. Gann, an early chartist, used when manually sketching massive charts across his office walls—decades before computers existed. No matter what tools you add later, price is the essential starting point.
Time: The Overlooked Axis
Most traders are comfortable tracking vertical price moves. But the horizontal axis—time—is often ignored, despite being equally powerful.
I use time-based forecasting to identify when turning points may occur. This isn’t reserved for long-term investing or decade-long cycles. In fact, you can apply time studies down to the intraday level. Incorporating time allows you to anticipate when a market is likely to shift, adding a dimension that price alone can’t provide.
Once you begin thinking in terms of both axes—price and time—you start to see the market as a three-dimensional system, not just a line moving up or down.
Momentum: The Market’s Speedometer
Momentum tells you how fast price is moving—an important clue before a turn occurs. Think of it like a race car approaching a corner; it speeds up or slows down depending on what’s ahead. Markets behave similarly.
While there are many momentum indicators available, I focus on the RSI Power Zones. They go beyond the standard “overbought” or “oversold” signals by adjusting based on the current trend. In a bull market, RSI naturally holds higher levels; in a bear market, it sinks lower. That shift is crucial for reading market tone correctly.
I’ve studied and used many tools over the years, but layering multiple momentum indicators (like MACD, RSI, and Stochastics) doesn’t necessarily offer new information. If they’re all designed to show similar signals, using them together becomes repetitive, not insightful. That’s why I prefer combining momentum with different types of data—like price or time—for a clearer signal.
Why Just Three?
Using only three data points may seem sparse compared to the typical cluttered chart. But just like triangulating a cell phone location requires only three towers, price, time, and momentum are enough to zero in on quality trade setups. Adding more can sometimes lead to overanalysis and hesitation.
Each piece of the trifecta plays a distinct role: price shows what’s happening, time suggests when it may change, and momentum reveals how strong or weak the current move is. Together, they form a framework that balances simplicity with depth—without relying on countless overlapping indicators.
Final Thoughts
This trifecta isn’t a fixed rule—it’s a framework that works for me. If you’re currently using a chart setup packed with tools that often point to the same outcome, it might be worth stepping back and reevaluating. Fewer tools, used with greater precision, can lead to clearer decision-making.
~Hima
📹 Looking for More?
If you want to expand your knowledge beyond the blog, check out Hima’s free educational content on her Youtube channel. She shares quick tips as well as deep-dive sessions on YouTube—no account needed.
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