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
I am always open to questions, comments, or suggestions on how to improve this blog.

Wednesday, October 22, 2008

Nasdaq chart

Check out the following chart of the daily Nasdaq Composite Index, we made a new low today on a closing basis.
On the chart I have marked 3-day time cycles at the bottom of price, starting September 29th when we had our widest range down day and fell through support. Since that time every third day was a wide range day that was either a new low or closed on it's low with a large range (October 2, 7, 10, 15). Pretty coincidental huh? This past Monday would have marked another 3-day cycle, but price instead rallied. Perhaps we're transitioning to a 6-day cycle? Which just tells us that it's taking more time to have these wash-out sell-offs, which in turn could mean the downward trend is slowing down. We'll see how things turn out tomorrow.
Notice also that the 10-MA is resisting upward price movement.

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