let’s take a look at a zoomed out chart.

These are “fast” charts, meaning things are taking place very quickly depending upon what type of approach you are used to.

Regardless, keep in mind we can apply much of this to any time frame. These are short entries.

 

 

Since we refer to bands, entries and exits should be reviewed to see how we are sticking to guidelines. For Example, price was travelling down fast and the entry took place below the moving average and middle band.

Also, do you notice a triangle formation?, it turned out the short entry was near the bottom of that. It can also be noted that price didn’t test the moving average until many ticks lower.

 

The chart graphics make it seem like the entries and exits were better than in reality. In this case there were some ticks gained however the actual entry was was right about at the middle band.

 

Here are a few trades on the 1 minute chart.

 

Then later in the day

 

 

I simplified the charts. This is how I was looking at the second trade in real time.

It took off later (after I exited) all the way to a larger trend line I had drawn.

 

 

 

Last week we had a large move on the Dow.

Depending upon what type of analysis was being done, there may have been several ways to trade this day.

If a short term chart is mostly being used, it may be challenging to get into a trade once a predetermined level was taken out and the price isn’t pulling back much.

 

 

Let’s take a closer look-

Some people will use something like this below, to determine when a trade can be taken.  A simple 20 period moving average may be of some help. Patience is key here.

The circles are where price comes to the moving average.

The first one had no clear candle pattern that would be helpful. However, that could have been a profitable trade without price ever really moving against a long position.

The second one took a decent bounce off of the level and pulled back. The second bounce (the right side of the circle) looked even better.

The third one was a nice inside bar exactly at the moving average