A trader explains how to find short opportunities on intraday charts. Check the daily trend first, then scan 5- to 30-minute charts for small moves called "rizzies." Enter shorts when a down-trendline forms after a bounce, target $20 profit, and stop above the trendline break.
With trading, it's really important to establish an overall trend for the market. You know, like the daily SPX is in an uptrend. So this is something that I would use for that. But there are times where I see these little rizzies on like a 5-minute chart, a 10-minute chart, a 30-minute chart, and I'll take it. And my cue is when we start dropping, right? We never go straight down. There's always a bounce. We start dropping. I sit, I wait for the bounce, and when the bounce comes, I see if it's forming a trendline down. And if it does, then I'm like, hmm, we might be forming a little rizzy. And so I might go short here and What I would be playing is, you know, this $20 below here, and that would be my exit point for a profit, or my stop would be maybe somewhere up here where that trend line was broken if we got to close up here.
