# Why the 5-Minute Chart is the Secret to Precise Entries

Canonical: https://stocksurgedaily.com/why-the-5-minute-chart-is-the-secret-to-precise-entries/

As regular readers know, we use different time frame charts for different purposes…

We look at monthly charts to determine the long-term direction.

We look at weekly charts to find the intermediate-term trend.

We look at daily charts to find the short-term trend, and so on…

90% of the time, I am watching daily charts of various stocks and indexes.

If I’m looking for a larger move, I analyze the weekly time frame.

But if you really want to [**drill down and buy with great precision...**](https://stocksurgedaily.com/why-you-need-to-watch-the-200-day-moving-average/)

I suggest using a five-minute chart as well.

The setup I look for involves shrinking volatility as price action tightens from the left side of the chart to the right.

It is a timeless approach [**based on supply and demand**](https://stocksurgedaily.com/how-to-become-an-alpha-trader-with-this-timeless-stock-strategy/).

## **The Five-Minute Secret**

After [**scanning for stocks with good fundamentals**](https://stocksurgedaily.com/how-to-scan-for-stage-2-stocks/) and high relative strength, I’m looking for a good setup on a daily chart with a low-risk entry point.

But if the same pattern shows up on a five-minute chart (which it often will), this is an even better sign.

Look at this daily chart of **Iron Mountain Incorporated** (IRM) for an example.

![](https://lh3.googleusercontent.com/XkSO_zCiw2pMnI3dlKCBahdMENVa6MVHvnLzvQETA-Wslp2WL-1CIhkIxCqw2SoVBTZX_UloR9TgO4uDEJc01ZBG375TyMbhQmD9b8YFFsXUTM_Y-UEYEMLGAU5ofuvOdQ)

**_Daily Chart of Iron Mountain Incorporated (IRM) -- Source: TC2000_**

[**Pullbacks decreased from 15% to just 3%**](https://stocksurgedaily.com/how-to-use-volume-as-part-of-your-stock-strategy/) before breaking out two weeks ago.

But to get even more precise with your entry, go to a five-minute chart.

You want to see the same pattern emerging over the last one to five days.

Here’s how that looked with IRM…

![](https://lh6.googleusercontent.com/vrU-Icccioi5QriLCj8sawLHD1EQOd4EPkHL0XeEfwbTqrSokweeHtA3ybZ6fKE6f6nKRS0fxPe4gWIZNameMiTgSmh14mj8Fior8fa-XGjiwB8njdfCvNYOG5Vk2OfQgA)

**_Five-Minute Chart of Iron Mountain Incorporated (IRM) -- Source: TC2000_**

Look closely… It’s almost an exact replica of the daily chart!

Pullbacks compressed from 2.1% down to a miniscule 0.3%. This allows you to [**very precisely identify the exact buy point**](https://stocksurgedaily.com/how-to-follow-my-weekly-trades/).

This won’t happen every time, though.

Sometimes the five-minute chart does not show the same pattern.

But when it does, I am a lot more confident in the trade.

Embrace the surge,

![](https://lh3.googleusercontent.com/bD6sOQD8fgJ9KWrORjl8UkhsUqZEKGWnh0_A_0nkmeXoR07JVVuITFC3xJyazlldNc-Pszf-w-ElN49jzIm8HWRjzSwNu21pBCIDCCopGSyHzdFvSwFLQS_3zifYtJI0SQ)

Ross Givens

Editor, **_Stock Surge Daily_**