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.

Monday, January 26, 2009

range bound

The range continues, with some vicious moves today. The Q's stopped just shy of $29.60 resistance (just above today's R1). The retracement from the morning's strong move fell into a triangle pattern that traded to the downside while chopping around Vwap for most of the afternoon.
The continued downside was awfully swift, moving price back down to PivotPoint support where a perfect little hammer reversed the trend to bring price back to vwap again.On a wider perspective, we can see today's move running up to previous resistance (a higher short-term high), while the swing low of the day coincided with the midpoint of our consolidation range and Friday's swing low ($28.80). Price currently sits wedged between the 20- & 50-EMA on our 15-min chart.
Here's a look at the 60-min chart where we find ourselves in a bearish looking wedge. With a breakdown of this pattern keep an eye on your ultra-short ETFs. Perhaps price direction from this point might largely depend on where the U.S. Dollar Index goes from here.

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