For Triggers, I Like This Timeframe
The S&P and Nasdaq markets are
both in the red this morning as they finally retrace hourly uptrends established
during Monday’s session. As a result,
both markets are currently trading in a fairly tight range as 13-minute
downtrend probe vs. 60 minute uptrend conflicts resolve themselves. Given hourly
support at 900 on ES and 1025 on NQ, traders using the hourly charts may want to
consider any reversals on the lesser timeframes to consider pullback long
entries with stops on a loss of hourly support.
As a few folks have asked which trigger timeframe to consider when trading the
hourly premise, the exact period depends on the amount of confirmation premium
one prefers. Traders can choose among a pure fade, a one-minute turn, a
three-minute turn, and a 13-minute turn depending on the amount of confirmation
required. Of course the more confirmation one requires, the greater the amount
of confirmation premium paid, which can eat into part or all of a bounce if the
move is short-lived. As a result, I personally find the three-minute to be a
decent balance of confirmation and timeliness, keeping in mind the 13 downtrend
support will be trade resistance until surpassed.
ES (S&P)Â Â Â Â Â
Tuesday December 17, 2002 11:30 A.M. ET       NQ
(Nasdaq)
Moving Avg Legend:
5MA
15MA 60-Min 15MA
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