The purpose of this Market Call section is to educate readers in technical analysis patterns and indicators. As with all investment information, you need to research information and consult your financial advisor before initiating any strategies that are contained in Market Call.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

This column tries to present historical examples, potential set ups, and examples of entry and exit strategies.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

This column tries to present historical examples, potential set ups, and examples of entry and exit strategies.

Time Frame

One question that every trader must deal with in trading or investing is Time Frame. The Time frame is more important than the indicator parameters used by a trader or investor.

The focus of the column is on Day Trading. However, the same patterns, indicators and moving average parameters may be used on 5-minute, 15, minute, daily or weekly data. The key is to be consistent in your trading style and risk reward parameters.

A Day Trading stop loss of average profit may be 1 to 2 points. A longer-term trader may allow a stock to move 5 to 10 points against him before receiving a new signal. Our charts here are for 60minute bars.

Let's look at VerticalNet Inc. (NASDAQ: VERT)

VERT has been in a steady decline from the 108 area over the past couple of months. On a 60-minute chart, there have been a few rally attempts, but each of these has been met with new selling. The trend as defined by moving averages still points to lower prices.