Using different time frames to choose the best trade can really work well when you find clean patterns. That’s basically what I’m always searching for; the cleanest pattern. It doesn’t matter if it’s a 5-minute, 15, or hourly chart.
I was able to catch the downfall in the chip sector today by trading the clean pattern of the 2x short ETF SSG.
The buy signal came yesterday off the retest of support. You could place a stop below that pivot, or the lowest spot of support. You could sell some into the runup to lock in some profits. Holding this pattern overnight wasn’t as risky for me, since the pullback near the end of day, stayed above the pivot. The pattern still looks good at the end of close today. The ETF has made a clean pullback.
TZA was the same pattern and caught the decline in the Russell 2000.
