We possibly double-bottomed today (short-term) on QLD (along with a lot of other issues) on a higher momentum swing low (not shown). Seemed like selling was weak and buying felt hesitant. Can we hold these lows?? Options expiration tomorrow, not sure what to expect there.
QLD spent a little time testing new lows today. Watching the 30-min. chart we had a steep trend-line that formed over the past two days (similar to the trend-line broken on Monday). Looking at the 15-minute chart we could see the new lows on decreasing volume, while the trend-line break took place with stronger volume. The retracement/test of the trend-line after the break out also took place on weakening volume. The lows and close of the previous day were tested and held as support. Notice also the wedge that formed along the trendline.Take a look at the 5-minute for a little clearer perspective on the "V"-bottom, support/resistance levels and volume trends.
The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at email@example.com
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