This Is Why You Should Switch Trading Time Frames
King Pharmaceuticals
(KG) gapped up on the news the company’s first quarter earnings
exceeded expectations. As you can see on the 5-minite chart below, KG did not
give us much of pullback. It immediately bounced off the upper Bollinger Band
and proceeded to record a new high of the day.
11:00:30 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
KG | buy stop at 9.21 | pullback (15-min) | 9.13 | 9.39 | 9.18 |
TK |
Instead of chasing the stock, I
decided to monitor it on the 15-minute chart. Sometimes it helps to change time
frames, so you can find better tradable chart patterns. KG tested the 50%
retracement level successfully, and it formed a narrow range bar. This was a
potential reversal situation, so I placed a buy stop at 9.21.
11:32:23
Follow up on KG
Move stop to breakeven.
11:34:40
Follow up on KG (Pt 2)
We are selling half for a 11-cent gain.
11:48:31
Follow up on KG (Pt 3)
It has hit our target price. Sell the rest or re-adjust your stop.
Feel free to mail me your
questions.
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