I updated my published outlook for FB yesterday mid-day, and the stock ended up moving higher and taking out the 30-min ATR resistance level I had an audio alert at. I was looking to trade FB intra-day once again today, but I want to wait until price takes out the 195-min ATR resistance level before I try and take any stock overnight.
FB – 195 Minute Chart
Everything is looking good for FB bulls into month end … before I swing or positional trade FB, I want to see price break the 195-min ATR and then “accept” the break of that level. Typically I like to see a multi-candle consolidation around that ATR level, but a controlled/shallow pullback is also fine in my books.
FB – 5 Minute Chart
You don’t have to hold a stock overnight to make money on it … all you need to do is look for a spot during the day when the odds of seeing follow through on the bigger trend is likely to work-out. For me, I try and focus on my chart indicators and the bullish signals they make/confirm when they have a crossover … I circled the area in red where traders had better than average odds that a long trade was going to work out.
You can see what happened to the traders that were too anxious first thing … they were likely stopped out during the subsequent consolidation, after getting long on that early large bullish candle (2nd five-minute candle of the day). Most times it pays to be patient and wait for an intraday consolidation set-up rather than buying the opening push/market orders.
FB finished the day with a bullish 15-min candle so I will be looking to trade FB intra-day once again tomorrow.
Cheers … Leaf_West