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Strategies & Market Trends : NEW Market Gems - Swing and Day Trades -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (248)	5/27/2001 12:28:27 AM
From: Jenna	Respond to of 1227

Importance of Multiple Time Frames in Day and Swing Trades You can NEVER trade looking just as the 5 minute chart in isolation. I usually have a 5,15 and 60 minute chart and ALWAYS refer to the daily chart. Intraday charts are constantly tracked, trendlines, support and resistance lines set with an oscillator and trending indicator. Watching the nq's and S&P futures contracts intraday is crucial. The night before a scan looks for Daily Chart Breakouts as opposed to intraday breakouts. The actual trading day we set up intraday charts as the market is moving that track for Fibonacci Retracement areas and trendline breakouts. The daily chart is always important to determine how strong a resistance or support was taken out and what is the next area of support/resistance. Trades are held longer and for more upside if important resistance is broken an shorts are held long when support is broken. Watching the very volatile stocks on 15 minute charts is crucial so that you don't exit positions too quickly when there is only a small change in the trend. How do you determine what is strong and what is just an area of bear/bull flag pause or even just a 1-2 bar reversal? There is no holy grail but with 'evidence' of being close to an important trendline, or an overbought/oversold pattern,(i.e. look at the different time charts) and a uncoming change in reversal period does help. For example I would expect a morning rally to fizzle by 10:15 into a possible spike high, unless the rally is very strong, then 10:25 to 10:35 should stop the rally cold. Intraday Nasdaq and S&P future charts should be closely followed: marketgems.com marketgems.com Into the doldrums with low volume, you should rarely open trades and usually trades might be incrementally sold off by then. Expect a late day rally that might repeat the early morning move.. and the same with downside. A stock that drops off in the 9:50 to 10:10 reversal period, might repeat that pattern in the 2:00 to 2:30 time period or even through the 2:30 and 3:00 period if the strend of the downtrend increases even more. In the NVLS chart below the daily and intraday are posted and you can see on the daily how crucial that support from the 50 day moving average was crucial in the determination of the intraday trade. marketgems.com If BEAS is in a downtrend we are prepared for more downside especially if the nq's are similarly deteriorating. NOTICE how strength in the trend will INCREASE by the 2:00 reversal period (Usually by 1:30 we prepare for volume/volatility breakouts) marketgems.com In this example on CCMP the doji indicated on our chart 5/14 did indeed lead to a break out on 5/16 rally from 59 to 80 before dropping off. marketgems.com For our earnings plays with strong technicals and fundamentals we might get a log more upside after a breakout. At 22.20 AMSGA continued an uptrend that moved to 28.49 before breaking down. This trade was also based on "Anticipatory Upswing" marketgems.com marketgems.com marketgems.com what you want from your trade is also important. Stops could be set wider on shorts in strong downtrends especially if you are in a swing short. Swing trade stops and and trailing stops should be even wider and reset at important trendlines and/or support and resistance areas. (determined by the daily and intraday charts)