Trends Turn in Smaller Time Frames First

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.