I love a nice, clean chart to look at, but it wasn’t always that way for me.
Back in the day when I was a newer trader, I found it pretty difficult to gauge the intraday momentum effectively. Many of you might be feeling the same way in today’s markets. There is one indicator I did find though that really helped me to develop a feel for the intraday price action, and I want you to know about it.
So in Episode #7, I’m going to show you a tip for learning to measure the intraday momentum if you’re currently struggling with that. This is not the be-all, end-all solution, but it is something that can help you catch more of a move and know when it’s time to exit. Even better, it can offer you the chance to get in on a move already in progress.
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
President, TheStockBandit, Inc.
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
January 20th, 2009 at 4:42 pm
Jeff, I like the detailed analysis. What charting s/w are you using? Better yet, what do you recommend for a Mac?
January 20th, 2009 at 8:55 pm
How on earth would you know at the open that you were going to be riding this down and getting out when it closes abovve the MA? Would your possible entry be to short at a break of support, then watch the MA for signs of reversal? It would help if you started at the hard right edge at the open and tell us your thought process as the day progresses.
January 21st, 2009 at 10:19 am
Hey Smitty,
That is StockFinder from Worden that I’m using.
As for what to use on a Mac, I understand you can run anything using parallels, but beyond that I honestly do not know. You might check EliteTrader and search for a thread there for Mac charting programs.
Thanks for stopping by!
Jeff
January 22nd, 2009 at 10:18 pm
Hey Brian,
Thanks for your comment and for visiting. It isn’t about knowing at the open what will happen, but rather understanding that in the current market, we tend to get some large and relentless moves.
With that being the case, I’m simply showing one way to keep watch on your trades to use as criteria for day trade exits, as well as something that can enable you to hop on board an already-moving train.
As I noted in the video, a short-term MA will help you see the pace of the move, helping you gauge when it’s changing. So selecting entries on reversion to the MA and using a close beyond the MA as your exit criteria, you’re getting a low-risk entry/exit opportunity with a shot at continued momentum. I think that’s win/win.
Hope this helps!
Jeff