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.

Monday, May 25, 2009


I posted two charts this weekend without identifying them, and so here's the reveal.
The first is what looks, to me, like an inverted Head & Shoulders pattern in the daily chart of USO.The neckline was broken at the start of May and a measured move could give a price projection in the $44-range (which coincides with the 200-MA area and a resistance level).
The second chart was (as revealed in the comments section) a 60-min chart of SRS, which appears to be giving us a Rounding Bottom pattern.As our beloved rally has relentlessly climbed, SRS seems to have frustrated holders into giving up on catching this falling knife. We can see that price seems to have stabilized after losing over 70% of it's value since March.
It looks like a base has been built and may be breaking out of it's established range.
Looks like a double-bottom recently. While the most recent test of the lows was on lower momentum, leading to a "Slingshot" setup.

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