The Art Of “Wiggling”

What is wiggling? Wiggling is constantly monitoring a position, and getting in and out of a trade ultra short term if the direction longer term is still valid.

Nvidia (NVDA) is a perfect example. Longer term, on a daily chart, the stock is finally oversold. Every time this stock has been this oversold it has a strong rally. The problem is that one doesn’t know where it is going to stop going lower. So longer term, you think it’s going up, but short term you don’t want to get hurt buying too early.

NVDA daily chart wiggle

The key is the “wiggle”. A shorter-term chart, the 15 minute, has worked great for spotting short term buy and sell triggers. But a 15-minute stop order leaves a lot of points “on the table”.

I like to then initiate with a 1 or 2-minute chart. As seen, after the 15-minute buy signal, a quick buy near the close yesterday would not have been stopped out till this morning, around 104.

NVDA wiggle 15 minute buy signal

The key in “wiggling” is as long as the 15-minute chart is in an uptrend, then every ATR trailing stop buy signal on a 1-minute can be taken. In an uptrend, usually the stopped-out losses are very small, compared to the gains when right!

Chris Brecher

Chris Brecher Stock Vice President

Chris Brecher grew up in Jacksonville, Florida. Though he went to college for Paleontology and Marketing, he settled for being a Stock Broker. In watching the brokers in his office lose every time by taking shots in options, Chris wanted to find out who was making money on the other side.

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