Pivot points on smaller time frames signal the beginning of pivot points on bigger time frames. Today the three major indexes, Dow, Nasdaq, and SPX traded to a third day rally. Moving down to a 60-minute chart on a few ETFs tied to market indexes, we can see indications of mini-trend turns. I traded a few today.
With the volatility so wild, the 60-minute chart of MZZ allows me to cut out intraday noise that would probably stop me out on a 5-minute or 15-minute chart.
The ProShares Ultrashort MidCap 400 ETF, MZZ formed a buy signal after it formed a higher low pivot. In the past few days the market, and MZZ have moved a great deal. I probably shouldn’t have expected much, and at least taken a partial sell quickly. I at least wanted to see the next candlestick hold a higher high, and higher low. In this case, I tried going for too much, partly because I was in the bathroom during a spike up, and because I got too greedy. I didn’t turn the profit into a loss, and sold breakeven. One of these buy signals will form again. It’s important I don’t remember what happened on this trade.
The time of day was poor for this buy signal. MZZ had just moved out of a distribution area, and as mentioned, moving averages point down. With those specific circumstances I should have sold some higher.
