At around 2PM today I checked an intraday, 1 minute chart of RIO. I saw a nice short trade setup developing. I said to myself "If I weren't working right now, I would short 1000 shares at $32.10." I checked back every few minutes, monitoring my hypothetical trade. After about 15 minutes the stock dropped to as low as $31.77, at which point I said to myself, "If I had actually placed this fairytale trade, I would cover right now." Depending on the order execution, this trade would have been worth between $200 and $300. Not too bad for 15 minutes in the market.
I used candlestick formations, trendlines, and support/resistance to determine my entry and exit points. I also used multiple timeframes - a 1 minute chart to spot the setup, and a 5 minute chart to eliminate some of the "noise" and take a step back to see the bigger picture. It's quite amazing that the same methods of technical analysis work for both 1 minute charts and daily charts.
Check out the 1 minute chart:
And the 5 minute chart:
And the 5 minute chart:
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