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 the 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.