60 Minute Charts and Multiple Time Frames

If you aren’t using multiple time frames to trade, you’re missing out on the whole picture of what the market is doing. Throw out about 99% of indicators. Use basic moving averages, trendlines, and watch the price action. Mix with high ATR stocks. That’s all you need. It’s supply and demand. I do some guessing as to market direction, but I’m no Nostradamus. Is this the bottom? I don’t know. What I do know though is that the 60 minute charts gave buy signals today, and I took the trades.

Let’s look at UWM. This ETF is the double-long for small caps. You can see the volume spike on 031108. We had a gap up on fed news. There’s a buy signal on the fourth candlestick that day. Now you have to watch other charts like the Nasdaq, SPX, and INDU for some general targets. Most indexes went to 20 dma’s. Selling in partials on the way up booked some gains. You can see volume increase again near the top pivot on UWM. Traders were booking gains, or thinking they missed the move and buying. You’ve got both sides of emotions at the point. Then the slide occurs, which gaps down today. Look at that volume on the first candlestick. A buy signal occurs on the next candlestick at 44.4. Now, you can be aggressive and set a stop under the day’s low, but I went with the lower pivot low at 41.94. After that it’s trade management. 1/3 could be taken off as we near an area of overhead supply at 47. A final target of 50 is just above the 200 ma on the 60-minute chart, and the 50dma on the daily.

So how did I know to use the 60-minute chart? It gave the clearest picture. Let’s look at the 15-minute chart for UYG today. I use it because of the clear view it gives of this classic buying pattern. A spike down on volume is followed by a bounce. Now it’s too far down to try shorting here. We get a higher low pivot, and a buy signal off. From there it’s up and away. The 200 ma stalls it, and was a good first target.