Did you nail it?
Someone has wisely said that “If the only tool you have is a hammer, you will tend to see all of your problems as nails.”
In our business of trading, there are a minimum number of “tools” required if we are going to play in the major leagues. The good news is that prices have become more reasonable for computers, multi-monitor set-ups, and possibly software/charting packages.
Let’s confine today’s discussion to the charts as tools.
How many charts are you studying to make trading decisions?
What time frames?
What indicators do you use?
When the chart is moving fast, how can we select the BEST chart to help us make a profitable decision?
Each of us has our favorite time frames we use to help us evaluate the market dynamics. The key is to find the REAL one that is in play.
Keep it simple. With a travel range of 100+ points and the vix at more than 72, the major focus should be on getting the direction right for “the next 10 to 30 minutes”. There is ample opportunity to secure profits if we have the courage to be patient, and then pounce when the proper set-up comes along.
The bears tried to put some final nails in the coffin today. We may be near a major profit taking area, so best to stay nimble.