This Monday morning brought the stock of MRO, Marathon Oil Corp., to the stock trading guy’s attention. You can see on a daily online chart we have a stock trending up. Using technical analysis, the stock trading guy is looking for a higher high off the recent pullback of the stock. Marathon Oil Corp. triggered that this morning by gapping higher. Time to find an intraday entry.
Because the stock trader looks at multiple time frames when trading, he decided to trade this two ways. The stock would be traded intraday and a 1/3 would be put on as a swing trade. He made this decision after viewing the 60-minute chart. It was in a downtrend and it’s moving averages were descending down. This stock chart shows end of day data, but you can picture how it would look at the beginning of the day. The online trader decided to swing 1/3 of his lot size overnight using the previous day’s low as a stop. The other 2/3 would be day traded. The trade on Marathon Oil Corp. was put on this way because of the inconclusive 60-minute stock chart.
The trader used the 5-minute chart for an intraday stock entry as seen on the next page.
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