As AbleTrend Overlay Guidance Chart becomes more and more favorable among the successful users of AbleTrend many traders ask “what’s the best time interval for guidance chart?”
For day trading you may use the 1-minute chart with the 3-minute chart hidden, or the 5-minute chart with the 15-minute chart hidden base on your risk tolerance and reward expectation but among all of combinations of the time intervals for the Guidance Chart, the 3-minute chart with the 9-minute support/resistance is the most popular combination. It seems that the 3 minute chart is sensitive enough to catch the good entries and the 9-minute is long enough to define the day trends and tell where there is hidden support or resistance. Here is a recent example of the Guidance Chart with the 3-minute chart with the 9-minute chart hidden day trading the E-mini S&P:
Chart above is a 3-minute chart with 9-minute chart hidden. Small red dots above the bars are 3-minute AbleTrend T2 resistance levels, red “x” are 9-minute AbleTrend T2 resistance levels. Sell when you see red “x”, red bar and large red dot all showing. Exit the market when you see large blue dot.
Trading is an art to find the balance between the risk and reward. With AbleTrend, you can now to test the market you are trading with the risk tolerance you desire. If you see enough charts with hindsight, you build your experience. Remember, market is changing all the time, and the rate of changing is increasing. The principle of AbleTrend remains the same wherever you place it. When you have something that is steady, dependable, something that is essentially change less, then you can live with change; in fact, you thrive on change, especially in a competitive environment.
If you’re not using AbleTrend already, you can use promo code: WTMF10 to get extra 10% off for AbleTrend 7.0 30-day trial. $99 for a 30 day trial (List price $199) This bargain price will end on April 30. Future price is subject to change.
For addition insights and articles on trading, see our blog: blog.ablesys.com
Or watch archived sessions from our introductory and member’s webinar series: Click here to view our youtube page
With Warm Regards,
Grace Wang
AbleSys Corp.
gracezh@ablesys.com