What Can a One-Minute Chart Do for You?
09/29/2013 6:00 am EST
Harry Boxer, author of The Technical Trader, shares his day trading technique with one-minute charts that helps him spot unusual volume and price movement immediately.
SPEAKER: Hi, my guest today is Harry Boxer. Hi Harry, and thanks so much for stopping by.
HARRY BOXER: My pleasure, thank you for having me.
SPEAKER: You're quite welcome. So you are into trading and you've been doing a lot of day trading lately using one minute charts.
HARRY BOXER: Right.
SPEAKER: Now, explain that to me because I don't understand it.
HARRY BOXER: Okay. Well, patterns form in all time frames.
HARRY BOXER: And I learned that over the course of the years that I've been trading, over 50, that the same patterns that I saw on daily charts also form interday using one or five or 15-minute charts, but the ones that I like trading the most are the one-minute charts because it's more immediate and it gives you the ability to spot an emerging trend within a day.
HARRY BOXER: And what I look for is the opening thrust on heavy volume, heavy relative volume. See, stock could be an average of 50,000 shares a day and it could be trading only 300,000 or 400,000.
HARRY BOXER: But yet relatively that's like eight, ten times what it normally trades, or stock could be averaging a million shares and if it's only trading a million, a million-two, it's only average volume.
HARRY BOXER: I want to see that stock trade four, five, 10 million shares.
SPEAKER: Sure, that makes sense.
HARRY BOXER: So I look for stocks that are having unusual volume and usual price movement, what I coined the price volume surge, stocks that are surging, and then I look for the first pullback consolidation early in the day that's setting up for a trend, a stock that could end up channeling up all day.
HARRY BOXER: And oftentimes we find those movers, good or bad markets, and we stay in that trend all day because it channeled up and never break a support level.
SPEAKER: Well, I've heard a lot of traders say to me that they only trade at certain times of the day. They're morning traders, forget it after 3 o'clock, but everybody's got a different system.
HARRY BOXER: Right.
SPEAKER: But you're basically sitting there and looking at it on a minute to minute basis for most of the day.
HARRY BOXER: Right, but the point is on my web site we have webinars all day where I show you how the trends are developing.
HARRY BOXER: And that keeps my people in, because if a stock is trending in a channel, 45-degree angle, thereabout, and it continues to go up no matter what the market is doing, we'll stay in it.
HARRY BOXER: We'll keep raising our stops until either the stop's taken out or my targets are hit.
SPEAKER: And then are you usually out of them by the end of the day?
HARRY BOXER: Yes, absolutely, but for the most part a lot of people tell me that the early trades that I give them in the first 20 to 40 minutes, they're usually out within an hour or two.
HARRY BOXER: And they're, you know, making the majority of their money early in the morning. Some people, a lot of times those stocks will consolidate, coil, or form some kind of pattern that indicates it may get another leg up and then we'll have a second trade on the same stock in the afternoon.
SPEAKER: Right, and is it generally a smaller profit trade in the afternoon, or is there any rhyme or reason to it?
HARRY BOXER: No, usually what I look at is what the first move was and I'll measure that move and say, give an approximate target where the second move may be, and it's uncanny how often it comes out to be a pretty good target.
SPEAKER: Very interesting. Well, thank you, Harry.
HARRY BOXER: My pleasure.
SPEAKER: And thanks for being with us at the MoneyShow.com video network.
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