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.

Thursday, March 26, 2009

chop fest

A very choppy and confusing day (for me). The initial gap-fill attempt (on SPY) showed some dull volume while the TICK didn't get overly bearish. We got a little inverted head-and-shoulders pattern, but buying the neckline break of the pattern would have tested your patience all through the day.While most of the day was spent in a narrow range channel, there were clear examples of support becoming resistance and resistance becoming support.
In keeping a watch for the "First Cross" strategy, there was a long entry that was given at the first opening candle (so perhaps you could have just waited for a pullback from that level, which would have gotten you in at the early morning double-bottom). While the short entry towards the end of the day (red vertical line) didn't work out. However, notice that there was a "Slingshot" setup where price makes a higher low (in this case it was very marginally higher, almost a precisely equal low) and our momentum oscillator makes a lower low (lower momentum unable to drag price lower), which results in a "slingshot in price.The 15-min chart rode the mid-line as resistance all day long.The S&P500 is at an interesting area, where it looks like it just wants to tag 850 just for the heck of it.Do we get resistance from the trendline, or do we break it and get support?

No comments: