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.

Friday, April 3, 2009

back to the previous day's highs

The opening (5-min chart) gave us a "First Cross" trigger though it's preferable on the open to wait things out to gauge any surprises. The pullback from this trigger ended up being a WR7 (red vertical line) where price wasn't able to recover the opening low or vwap. Things were very choppy down below S1. The bottoming Head and Shoulders pattern formed on a bullish momentum divergence and a buy of the neckline break went pretty smoothly.The second "First Cross" entry long (green vertical line) was at a pretty exhausted level where you could have just targeted pivot resistance. The other markings on the above chart indicate a higher low in price, corresponding with a lower low in momentum, these two guidelines tell me to be on the lookout for a "Slingshot" setup, sure enough! I wasn't expecting that big of a reaction after being lulled to sleep towards the end of the day.
If, based on the 5-min chart you didn't trust the Slingshot setup, looking at the 15-min chart you were getting a "First Cross" setup taking place right around the same time (last green vertical line).
Speaking of "First Cross" setups, here's the 60-min chart where we got a First Cross setup after three hours of trading today (latest green vertical line).If we move higher from here, we certainly have some upside to $87.50 resistance.That is IF we can get beyond the resistance that the S&P500 is sitting at from the end of this week.

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