@RaginCajun did an awesome review of a particular trade (long YY) inside 12631 last night on our blog. For educational purposes, I thought it would be a good idea to share it here.
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…there’s really no special indicator I use to trade, I look for consolidation patterns, tight ranges. I scout them out at night looking for ripe daily charts, then locate the clear action point using the 30 min chart.
When it all came together for me is when I started viewing 30 min charts. This is how you find the action point ie. the point at which the stock breaks out.
Case and point:
Just looking at the daily is only half the picture. This is my starting point, this is the point at which I flag a stock and start to zoom in to see if there is a clear action point.
Once we zoom into the 30 min chart, it’s like we put on a really good set of glasses. Look how clear our action point is before the breakout.
Once I know the daily chart displays a favorable chart pattern, and the 30 min chart clearly shows my entry point, I simply wait for volume to trickle in.
The 5 min chart is what I view on an intraday basis. When I see volume pour in near my action point it’s time to execute my entry:
