PLS chart, page-15830

It's a good question and I'll try and answer it as clearly as I can. Just need to remember that every trader is different and one's temperament is a very underestimated quality in share trading. I work within a share trading group outside of HC and it's fascinating to see all the different personalities and what combinations fit their comfort zone.

Anyway, I'll combine a 2, 5 and 10 min charts for entries as between those 3 I can get a pretty solid feel for momentum and strength. But if sticking to those time frames for exits, I was finding that I was smashed out of trades to quickly and paying heaps of brokerage for very little gain. See, as you'd well know, for every spike in SP there's a backtest and those tests were flicking me out. So by switching to a 5, 15 and 30 min charts my results improved dramatically and had a smoother 8/20 to act as a tour guide.

Here's an example:
Check out how jumpy the SP is on the 5 min chart especially in relation to the 8/20 and yet then look at the 15 min chart and the 8 has been nicely above the 20 only testing it on Fridays close and late this afternoon. Today certainly wasn't a traders day on this one as the opening gap never closed and you won't get traders jumping in on highs.



I'm a bit slower than most but I also worked out that different stocks trade differently in terms of volumes and spreads so by sticking to only a handful of favourite stocks, you get to know each stocks little patterns as the orders flow through. (reading the tape).

Hope I've made sense.

Cheers

PS, hey I wasn't too far out with my little scenario yesterday, I indicated an open of 4.64, out by 1 cent.