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
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Tuesday, April 7, 2009

low volume nr7

A volatile beginning and end for the day. After gapping down below the previous day's low, the SPY ended the day as a narrow range bar on lower volume that barely filled the gap left from last Thursday.The 15-min range tried mighty hard to stay above our intact regression channel that's been in place for this whole counter-trend move. We got 4 tags of the 20-EMA throughout the day, while towards the end of the day price rallied to tag the 50-EMA twice before failing. Very choppy and confusing for me.The shorter time frame; In the early morning we had a Double "W" bottom pattern (strategy is to buy the breach of the W's apex). Price stopped at a confluence of S2 and the 50-EMA (on this 5-min chart). The range between 11am and 1pm was sloppy. Price held support twice in an area that corresponded with the "W" apex. The third test broke and led back down below S2. We got another "W"-bottom that failed to breach the apex, though price held the lows of the day. I'm left trying to figure out how I would explain the end of the day volatility.

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