SCREW YOUR INTRADAY CHART!

One of the main things I always preach about with trading is, that its all about the DAILY.  If you think you can short cut things in the market, you are dead, dead wrong.  The key is always to align on multiple time frames.  Look at the daily chart and form your bias.  If a stock is in an intermediate & long term up trend, do you think it is wise to go short when the stock is on support after pulling back for a few days?

If you think you have a great trading opportunity just because you have a nice intraday pattern, well you could be right, but that depends on the daily.  Your intraday chart means squat by itself.  Trading, whether its day-trading or swing-trading, is dependent on building a case.  The more "evidence" to take a trade the better.  Your "evidence" of the intraday (5 minute, 3 minute, 1 minute, whatever you use) is just as good as a murder case without the murder weapon.  You need that extra evidence to even make a case in the court of law.  If you try to make a case without the murder weapon, you will lose the case.  Same goes with trading.

When I take a day-trade now I always ask myself, would I swing trade this.  If the answer is yes, I will look to take the trade.  Pretty simple stuff.  Wait for the daily to set-up.  Look for an intraday pattern.  Take the trade.

Here is a simple flow chart I use to help decide if I should take a trade:

Still think you can get away with just trading the intraday pattern?  Well I have an example for you.

Everything looks great on this bear flag right??!??

Sorry you are mistaken.

Always remember.  DAILY DAILY DAILY.  Would I swing this chart?