I wish I could understand the mechanics and intricacies of this market that would explain what just happened in the last 5-minutes of the day. Whatever it was would also likely explain what happened around 3p.m. EST. Anyway...
The start of the morning went somewhat sideways, dipped down and put in a V-bottom. NYSE TICK divergences gave us warning flags of temporary tops/bottoms.The three momentum swings down this morning where successively higher, giving us a bullish momentum divergence. Price stopped at our pivot point, flagged, and based around that pivot area before expanding upwards. The end of this upward move ended in a gravestone doji, retraced back to pivot (now acting as support) in a pattern that looked like a falling wedge. The strong green bar coming out of that falling wedge was quickly reversed giving us a short entry based on my rules. I don't know what to say about the end of day there.I was contemplating switching to 10-min timeframe as my overview chart, but have decided against it as it seems to set up stronger signals. The two green arrows were entries based on my rules, previously discussed. The Daily looks to be getting stronger and basing at this $88 level. Similar story with the weekly. We can go either way.
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.