THE INTRA-DAY CHART
A better approach is to switch to intra-day charts as daily prices rise above the red line of the long term EMA trend indicator. On 3/18 the 45-minute chart above gave a low dollar risk sell signal ($200) to go short at 359 ¾ with a protective buy stop at 660 ½. The divergence of the RSI3M3 oscillator increased the odds of this being a successful signal. It would have been closed out on 4/9 at 624 1/2.
On 3/25 the daily price bar rose above the red line, and an intra-day sell signal on the 45-minute chart (a roll back chart) went short the last bar of the day at 651 ¼. The next day prices opened higher, made the highs of the day the first two minutes of trading, then continued the decline into the trading cycle bottom on 4/13. ). Our recommendations always stand aside for the first two minutes of trading, and after two minutes our protective buy stop was placed one tick above the high of the day (at 656 ½ on our intra-day rollback chart) for a $250 risk from entry price to stop. This trade could also have been held into the 4/9 close out at 624 ½.
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