Box Trade The Spys To Understand General Intraday Market Direction
If you read my post yesterday about not trading the open
, youd understand how my line of thinking came to develop this idea. The reason for this method is to give you a solid visual on the first 15 min of price noise. By boxing the first 15 min I can easily focus my eyes on where the market is coming from relative to the open. Doing this helps you keep in mind that after the first 15- 20 min the trend will have taken shape when the box created and copied exactly to fit everydays chart, is broken to the up or downside.
Box trading can help you understand market direction once the move has taken shape outside of the empty box as it gets filled during the opening minutes. After this you can then put faith into the direction of the market, making your individual stock picking a little less challenging. Of course this strategy is not fool proof and money must be managed properly admitting when the market is not acting right as it for example of Monday 5/24 . Study chart.
Visit link for the Chart:http://www.staralliancecapital.com/blog/?attachment_id=132
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