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.
Wednesday, November 19, 2008
trend to the lows
A gap down this morning in SPY, a quick fill and then down we go to take out previous lows. We've been in a bearish trend all week (well, of course we've been in a bearish trend all year, but that's beside the point) so we were looking for a good spot to get in short provided the trend was intact. We had that signal right before 10:30 after price fell below it's pivot point, recovered, and made a very brief new high before completely falling apart. The sideways consolidation throughout most of the afternoon was very difficult to trade, but price presented two opportunities to scalp short via stabs at the 50-EMA (on the 5-minute chart). At the end of the day, just when you were expecting a rally, price looked to be making a play for VWAP (also corresponding to S1) but just didn't have the demand, and down we went!