Why I Use Multiple Time Frame Analysis
Investors’ appetite for
growth stocks can be very hard to stomach when dealing with just the daily
perspective. Personally, I won’t make a move on a stock without
it making some ‘cents’ to my eyes on at least two time frames. My own preference
is to use the 5-minute, and/or 30-minute chart when facing a gap decision, much
like the one that occurred in Cal-Maine Foods
(
CALM |
Quote |
Chart |
News |
PowerRating) this morning.
This might have ended up differently of course,
as many of these high-flyers gap higher, and then leave the proverbial dock much
too fast to even wait a measly 15 minutes. That’s my own personal
preference. My attitude is you win some, you lose some–but ultimately my
comfort zone keeps me from taking on something that might not be all that it’s
cracked up to be.