While I look for 15 or even 30 minute pullbacks in strong stocks I use the smaller timeframes to time my entry and to set my stop. This greatly improves risk/reward. This works best for me if entering a long near support or a short near resistance.
ISRG proved to be a nice example of this technique…
- Alert trendline is horizontal dotted gray line
- Blue line is entry
- first diagonal red line is first target
- 2nd red diagonal is exit (I always exit day trades 5 min before market close)
- horizontal red lines are initial stop and updated stop (below 1 min HnS)
- The black line is the simple moving average 1 min 20 period
- The grey line is the 5 min 20 period moving average, acting as support.
- Click on the chart for an overview of what I look at.
