Show Me Mo
The look of orderliness
that trends have can be especially impressive when you zoom into
shorter-term time frames. Some who strictly trade the swing-trading time frame
should not limit themselves to day, week or monthly charts, but also look at the
action from an intraday perspective.
Here’s an interesting 90-minute bar chart shows
you the action in Phillip Morris
(
MO |
Quote |
Chart |
News |
PowerRating) from early January 2001. It is no
secret that MO has been in a solid uptrend since January 2000. For followers of
Goran’s column, the trajectory of this stock is watched particularly closely.
In any case, if you are weaving in
and out of MO for the time being, the patterns and potential entry points come
out especially well on an intraday chart. If you were focusing strictly on a
daily chart, you would have missed the bounce off MO’s 50% retracement between
the lows of its two-week trading range. Of course, one little bounce does not
make a trade. Going forward in identifying opportunities, however, you’ll want
stay aware of price action within shorter-term time frames, because some of your
better entries will jump out at you.
Thursday,
Eddie