Some things I learned from DinosaurTrader today:
Yesterday (Thursday) DT wrote;
"over the next couple of days, I'll be thinking hard about what I'm going to buy once I see that first BIG green VOLUME bar come into the e-minis on the upside. That's your tell... when you see that gigantic volume come in... don't trust any rally before you see that volume."
He was right on with this statement come Friday's session.
Today he wrote:
"I won't say it was a "rollercoaster ride," because that implies it was fun. It was sick, and it was historic. If you traded today, you can say that you traded the single most volatile day ever recorded in stock market history. The high on the VIX was 76.94."
I can tell you, when that S&P Emini green bar on big volume came down the pike and the vix dropped like a stone, I felt just as though I was coming down from that big drop on a roller coaster. I was down and in the red, but at least recouping some of the day's losses with conviction that I should let the trade run to the day's highs.
Simple, but never understated; Volume (Momentum) Precedes Price!
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
I am always open to questions, comments, or suggestions on how to improve this blog.