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SWC daily chart
This post is probably more a reminder to myself than anything else.
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When you use the True Strength Index (TSI) indicator, you need to chart the appropriate time frame for the results you desire. i.e. if you are concerned with price movement over the next couple of days, use the hourly chart. If you are more concerned about a week or longer trend move, use the daily chart.
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I made a decision a couple days ago to buy Stillwater Mining (SWC). On the daily chart, the TSI was just breaking up through the ZERO line. Textbook perfect.
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However, the trade has not been profitable thus far. In fact, the ZERO crossover could well fail.
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Click on the chart to ENLARGE
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SWC 60 min chart
I am going to hold my SWC positions until they becomes profitable. Having said that, if I had looked not at the daily TSI chart but the hourly chart, I could have avoided the temporary draw down that I now have.
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The hourly chart needs to be my 'go to' chart if/when I am considering a short term trade.
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Click on the chart to ENLARGE
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