Why The ‘Five Minute’ Is My Dominant Time Frame
I don’t mind being patient with a
position that is working in the right direction out of a well-defined pattern. But,
depending on the strength of the technical evidence supporting the position, I
might decide to tighten up the stops as the original formation loses its
efficacy, and time no longer looks to be on my side.
When the ‘case is strong’ I try to let it ride a
little bit longer, but even with the best reasons in town such as daily and
monthly evidence, bottom line, using the 5-Minute chart to find your pattern
entry, you have to know when it’s ‘time to stop.’
11:42:35
Intraday
Update
The S&P 500 ETF (SPY)
has formed an intraday 1,2,3
off of session lows, with the 3 pt. finding resistance at the earlier FlipTop
consolidation, that lined up with daily technical support levels. This area now
looks to be resistance in emphasizing potential shorts below the 3 point pivot
lows of 96.96. The SPY is down .62 at 97.02.
It worked for .30, which is more than enough in
my opinion to start booking some of the profits. My normal M.O. is thirty cents
on a third, especially when the initial risk is smaller than the profits on the
table. After that, moving the balance to breakeven is how we keep at least a
‘little something’, especially if this one particular trade doesn’t end up being
‘the one’. If you trade long enough, you’ll know that most of the time it’s all
about chip and putting, and not the fireworks that we get to witness each year
on the Fourth of July.
Remember to think about the immortal words,
“Show me the money,” the next time something is supposed to be working.
The market doesn’t work in mysterious ways. Price, volume, and given enough time
on the 5 minute chart, give us ‘daytraders’ out there, all the evidence we need
to exit in the ‘here and now’, and wait for the next high-probability setup.