Posted by: Geaux Fish
In reply to: None Date:12/12/2007 12:35:38 AM
Post #of 35110
Word of the wise on Intraday charts
Most common use of intraday chart is 10 min & 30 min charts
One must under stand when to pull the trigger based on these two charts.
Example PLX charts below 10 & 30 min chart
I watch many stocks Pick’s on many boards that a individual will fail to pull the trigger when it is time to. Only to think it will come back to only learn it's not. So you sell to break even or even at a lost. One must have free time to watch the market to take full advantage of the play at hand with out a set stop lost in place.
The entry is based on say a 3 month chart with good indications that the stock will only move up at entry. Well to better this entry refer to the 30 & 60 Min chart to see if the Parabolic Sar is at the beginning of a trigger or no more than half way into the leg. If both the 30 & 60 min are under the candle. The stock that you pick off a 3 mo chart 80% of the time should be doing just that. Going up!
Now to take full advantage of the play use the 30 min chart and the 10 min chart.
In the PLX 30 min chart notice when the play was a buy on the 5th once it broke above the 3.40 area. Now if one had this on the radar screen from a 52 week low scan or pick, you could have maybe made a better entry. FYI notices the price tag at the low of 3.01. Well if you are using time delay charts of 30 min or more you would have mist out on the MM posting the low tag here. FYI that’s why I use live none delayed charts.
Now less move on ok say you bought in at 3.42 Ok now we want to look where is first resistance on 3 mo chart, This can be a number of candle sticks tops or bottoms of the sticks. The more candles in a row the greater the resistance. Incorporate this in with the next moving average above the PPS. If the two are fairly close go with the moving average if it is above this point. If the moving average is below go with the line of resistance.
Now you’re set to ride and now have your target set point of where the PPS may reach. You can even set the sell and lock in on this point.
Ok now we are watching the 10 min chart simple green is what it has been call by many who know it.
On the 10 min chart makes great for a swing trader. Not for a full leg based off the 30 min chart. Will get here below. Watch the RSI 2 green and purple RSI 5. When you see the RSI 2 green break below the 30 mark it's either ready for a buy or close to it. The RSI purple will only enforce this as a stronger buy point. Now for a sell point watch the RSI 2 green break the 70 mark and you either close to a sell or there already. Same here the RSI 5 helps the strength here of a sell point or a hold. FYI now once the RSI 2 green breaks down you have already hit your peak. I say again 10 min simple green example for a swing trade only.
Now let’s take the 3.42 area entry and ride, I am watching two charts some time three. 10 min, 30 min, & the 60 min chart at times.
30 min chart rules over the 10 min chart in most cases as long as you hold the parabolic Sar under the candle on the 30 min. Notice on the 30 min chart with the ma-50 was on a climb, well even though on the 10 min chart the Sar triggered over the candle the 30 min held its ground. What help this was the ma-5, 10 and 20 on the 10 min chart had broken across the ma-50 here and was riding the ma-20 on the 10 min chart. This was very clear with the first green candle. So it was a hold at the first dip to the 3.80 area. Now the 60 min chart comes into play and rules over the 30 min parabolic sar as long as the 60 min chart holds the sar under the candle. Now we close to pulling the trigger notice the MM inserted the 4.13 price tag on the 10 min chart, but not on the 30 min chart, Well this alone is a signal that it was not yet time that it still had some more to it to go. So it retrace to 3.83 on the 10 min chart to the ma-50 and the ma-20 on the 30 min chart. Now on the final leg first sign is the 10 min chart MM insert the 4.19 resistance price tag and at each peak the Williams 14 has broken above the 20 mark. Once you see the price tag with the Williams peak on the 10 min, jump to the 30 min chart and look at the RSI 2 to see if it is above the 70 mark along with a final watch to see if MM insert a resistance tag. If so bail out. Now the Tag may be at this resistance point at an earlier date and will not get posted. At this point if there is no price tag posted refer to the 60 min chart to see how high is the RSI 2 here and if the parabolic Sar is riding close. The key thing to look for here at this point is the RSI 2, if the 2 is stepping down after each high well it is a sure sell and you have than taken full advantage of a potential 1 to 3 day run.
Take some time and just watch a stock on a move with these 3 charts and it will come to you in time. I hope this will help and you will learn more as you watch this materialize you will pick up more in detail with the rest of the indicators that will help you make these choices. But the explanation above is as simple as it gets once you get the feel for it.
GLTY here at the Wealth University
We all here to better our self’s, to help out each other become a better trader and to help one reach his are hers financial success.
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