Here’s One Way To Gauge Momentum
Mixing time frames can be a
dangerous business,
but sometimes it’s the key to an early exit when conditions
change. One of the tools or patterns that I’ve been
concentrating on recently–when it comes to momentum breakouts–is the 8-period EMA on the 5-minute chart. I personally like to see any consolidation/pattern
work maintain this moving average in determining the strength for further
upside.
12:47:49
Intraday Setup Alert
Pacific Internet (PCNTF)
has formed an intraday ascending
triangle against the 8-period EMA on the 5-minute chart. Today’s trade has
the stock triggering daily pivots out of a 2-month basing pattern. PCNTF is up
.98 at 12.20 on increased, above-average trade.
Nothing’s perfect, but it has been a good gauge when used in conjunction with
intraday patterns–and that’s enough to keep it real, just in case your stock
decides to start digging a hole to China.