Friday, July 24, 2009

Situational awareness

Here is a 5 minute chart of today's EBAY Price action...



Here is a 10 minute chart of today's EBAY Price action...


The two images were captured at virtually the same time but tell very different stories.

This adds to the complexity of our work. One must be aware of all the timeframes, and what the broad market is doing, and what the sector is doing. All at the same time.

The only option is to trade on a daily chart and ignore the intra-day fluctuations.

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