Extend Your Time Frame
The recent trading range remains intact.
Despite this, there are still trades to be had. As I have been mentioning
lately, the first hour offers the best setups for trades off of a one-minute
chart (HVT). As the day grinds on, those
trades are tough to come by. The best way to adapt to this is to simply extend
your time frame. Again, look for the same setups, i.e. buying pullbacks or
shorting rallies to the 20-period moving average, but on a 15- or 60-minute
chart.
Granted, this is not the easiest thing to do. I struggled with this for many
years simply because I had grown so accustomed to being hypersensitive to
S&P and Nasdaq futures movement on a one-minute basis. This is a critical
approach for HVT, but does not serve you
well with longer time frame trades. Reduce your typical share size in order to
minimize getting whipsawed.
Obviously this is not a simple solution, but it is a solution that must be
pursued after the first hour if you wish to continue to trading for the
remainder of the day. I will attempt to put together a brief lesson for
tomorrow’s piece which goes a bit more in depth regarding this approach.
The best way for me to assist you with these concepts and setups is in TradersWire.
However, I am still working on getting my browser to work with TW, and I
hope to have that resolved this morning.
SOX KTNs
| 570 |
| 563 (key) |
| 555-56 |
| 546 |
| 532 |
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1143-44 | 1409 |
| 1136-37 (critical resistance) |
1395 |
| 1126 | 1384 (confluence) |
| 1114-16 | 1373 |
| 1111 | 1349-53 |
| 1099-1100 | 1334-36 (critical support) |
| 1084 | 1300-03 |
| 1074 | 1273 |
| 1141 | 1480-85 (key support) |
| 1134 (key support) | 1471 |
| 1125 | 1460 |
As always, feel free to send me your comments and
questions. I will be in TradersWire
as soon as the problem is resolved.