2MIN Technical Analysis Charts

The 2MIN Technical Analysis Charts, or 2 min time frame is a slower time frame from the 1 min, and we have found entries taken from the 2 min time frame are better suited for our personality.

As we have mentioned throughout the trading course, stock market trading consists of 95% trading psychology and then the other 5% technical analysis.
Once you have figured out what works for you on a psychological time frame you are in a better position to make informed decisions based on your psychological comfort level.

The 2MIN Technical Analysis Charts, always shows a candle stick that trades in a space of 2 minutes instead of 1 min. if you were to place a stop watch when you entered your trade on the 2 min time frame, you would have to watch that candle trade for a minimum of 2 minutes to make sure that the trade is going to work, or if you needed to take risk management measures to protect your trading capital.

When we look for an entry in a stock using the 2min time frame, it allows you to scan the stock movement in a two minute x-ray.

Unlike the 1 minute time frame, when focusing on the 2MIN Technical Analysis Charts, you have to always remember that it will take a bar 2 minutes to form and you should always make decisions after the 2minutes are up.

This means that the bar has ‘finished’ trading for that time frame.

Example: Let’s consider that you see an EXTREME FEAR BAR following an Absolute total control bar.

1. With your stock market basics, you know that this stock is likely to go up or increase in price.
2. You know that the move is bound to happen as soon as the EXTREME FEAR BAR has given you a clear indication.

Now, how do you anticipate an entry and know with as much certainty as possible? How do you gauge whether this move will be profitable?

As stated earlier, EXTREME FEAR BARS will create powerful moves 80-90% of the time in normal moving markets.

Your best option as a trader would be to focus your entries on the 2min time frame as the jig, or stalls are not as potent.

What do we mean by this? Let’s assume that the stock is set for a reversal, you would then wait for the stock to signal that the reversal is eminent on the 2 minute time frame.

Before the stock makes its move it may jig, allow all the astute traders a chance to get on board.

What will happen is that the stock will attempt its upward move, then retrace back to either the support area or slightly break the support area, as a means to test whether there are enough buyers willing to push the stock higher.

On the 2 minute chart, the jigs will be less severe than if the jigs were happening on the 5 min chart. Instead of the stock retracing back 20-35 cents which you would easily see on the 5 min chart, the stock will retrace about 10-15 cents.

This makes it easier for the stock market trader to hold the stock for longer period and allow the stock to complete its shake outs before the move upwards occurs.

If you were trading a $30 stock you would aspect a 10-15 cent jig in the stock on the 2 minute time frame and would be able to stay confident in your bias that the stock was indeed going to make a move higher.

Because the 2 minute time frame is only half as dynamic as the 1 minute chart, you are able to gauge whether a stock is resting, moving sideways, or ready for its huge move in the direction you expect.

• 2Min Technical Analysis Charts
• Stock Market for Beginners: 2 Minute Stock Market Time Frame
• Stock Market for Beginners: 3 Minute Time Frame
• Stock Market for Beginners: 5 Minute Time Frame
• Stock Market for Beginners: 15 Minute Stock Market Time Frame
• Stock Market for Beginners: 60 Minute Stock Market Time Frame
• Stock Market for Beginners: Daily Minute Stock Market Time Frame