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, February 25, 2009

double bottom

Price immediately sold off this morning on weak TICK performance, and somewhat expected relief from yesterday's excelerated expansion late in the day:right down to the 61.8% fib retracement between Monday's low and yesterday's highs (also correlating with yesterday's open high range; white dots on chart above). Price moved back up to pivot, formed a gravestone-like doji on the five minute and moved back to test the lows again:On our 15-min chart the 20- & 50-EMA orientation worked itself out to be short-term bullish, so we'll see where we go tomorrow from here, looking to buy dips tomorrow, unless things tank right off the bat. The closing sell-off could have been a blessing in that price doesn't have to travel far to test any solid support:Of notice today, and one of my favorite set-ups, is the prevalence of the "W" pattern (also called double-bottom patterns). The idea is to buy a break of the W's middle apex. Here's what today looked like in SPY on a 5-min.These patterns showed up all over the place in today's tape.

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