Gold at New Highs.

After a brief correction, Gold is hitting new highs.  The message is: Strong trends persist for a long time. Sure, there will be corrections in between. Quite often, trends will surprise us. This seems to be working with Gold. For a few weeks, we had sharp dips, and sideways movement in the metal. That eventually gave way to a resumption of the uptrend.

Is the Nifty going the same way? This question cannot be answered easily. We have to answer a question: which trend are we talking about?

The bear market or recent up move. Answer to this question leads us to the concept of multiple time frames. The bear market covers a large time frame, while the recent up move refers to a lower time span. For swing traders, the time frame and the current trend will be different from the two time frames discussed above.