By ITMS News on March 22nd, 2010 5:32pm Eastern Time
It is important to use multiple time frames in order to find the best support/resistance levels. Often what looks to be a bullish level on a smaller time frame may not necessarily be a bullish pattern on a larger time frame. The same theory holds true for moving averages on different time frames.
In this example, the SPY was putting in a bullish pattern on the 5 and 10 minute charts. However, InTheMoneyStocks.com traders identified the 200 moving average on the 60 minute chart as resistance. The SPY approached, and hit the 60 minute 200 moving average where it began a small pullback from that level presenting a great, high probability trade. Intra-day this was a very nice pullback, you can find this type of trade almost on a daily basis.
Remember this tool; use moving averages on multiple time frames to capitalize on powerful, profitable trades intra day, EVERYDAY!
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