The markets are correcting and the Dow is in daily and weekly downtrends. The ES is also in a daily downtrend but the weekly charts show congestion. Weak stocks are tumbling. This is the time for stocks that are strong, as they will probably get stronger when the market returns to an uptrend.
Lets look at Facebook as an example.
Chart 1 - Daily
This daily NASDAQ chart shows a new volume buy entry with accumulating volume (indicated by the red arrow).
Chart 2 - Weekly
This weekly NASDAQ chart shows a wide magenta bar indicating twice average true range (indicated by the red arrow). Normally the price will consolidate here and then push up through the high of the wide bar.
Note: the red arrows are placed for illustration only, and are not part of the software.
When prices close higher than the wide bar on the weekly this will indicate strength and an entry to the long side. Warning: if the indices are still falling wait until they turn. You are trading risk so you need to wait for a low risk entry. NASDAQ rising and Facebook rising – a potentially great trade!