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.

Tuesday, March 3, 2009

double top/bottom

Today's 5-min SPY chart saw a lot of double-top/-bottom setups. In other words, the W-long and the M-short; buying the break of the "W" apex, and shorting a break of the "M" apex. Here's a messy chart with the W's and the one M outlined, followed by another chart that just includes the trade-initiating line.For the first hour and a half on weak TICK, price on SPY flagged and fell down to S1. The rebound got price back up to vwap, where we tested the lows again. A higher low, double-bottom gave way to a rally that stopped dead around the days pivot point. This double top really fell apart and price just evaporated into the close.The 15-min chart showed us some points of resistance (short setups) with our 20- and 50-EMA's.

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