A very volatile end to the day as the market stayed within yesterday's range, leaving us with what appears to be a bullish Harami pattern on the indexes (which doesn't mean we won't still stay within the channel the markets are in).
Here's the concluding week in QID to follow up from yesterday's strategy post.
We did get a 20/50-EMA crossover early in the morning. Price pulled back from the sell-off leaving three long upper wick candles where a short entry was entered just below the 50-EMA. The move from that point was very shallow, coming shy of testing the lows of the day. Price consolidated sideways for the rest of the afternoon until just before 3p.m. where things got very volatile. As you can see, the Moving Averages crossed bullish then back to bearish by the close of the day. Come Monday we might look for a pullback to the moving averages and if price can't recover we could see a continuation move to the downside for QID (which of course is short term bullish for the Nasdaq). Taking a look at the Nasdaq Comp. things can really go either way from this point. The volume on the day was pretty lame, but the selling in the Q's today was defended successfully.
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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