Intraday Charts for Position Traders
If you’re a short-term trader who tends to hold
positions for several days to several weeks, you might, at some point, wonder
whether you can benefit from intraday analysis. Indeed you can, as
having access to intraday charts can help refine your entries and exits and
bring to light pros and cons about pattern setups you would otherwise not see.
Today in TradersWire
I saw a three-week uptrend in Protein Design Labs
(
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PowerRating) in which price
action rose along an up-sloping trendline.
Traders usually look for trendlines which produce large
swings off repeated bounces, as opposed to the tight action you see here. I
don’t know why. Perhaps these types of trendlines jump out at you more readily
when you’re looking at a price chart.
In any event, useful nuances of interest to position traders
emerge from a viewing of short-term time-frames. Here is a picture of the above
trendline action that is greatly enhanced through a 30-minute chart.
With this chart, your eyes are opened to more entry points than
you can see on the daily chart. The breakouts above rising wedges are very
similar to the ones we look for when viewing the daily charts of stocks in powerful
uptrends.
Until tomorrow,
Eddie