As price gapped down this morning it put in a silly little fake-out move down on weak (but not THAT weak) TICK. The better entry would have been to buy the pullback into the 20-EMA (on the 1-min chart below) at $90, but I waited for price to get closer to the Previous Day's Close (PDC), as a scalping strategy mentioned in a previous post. It set up a little flag/inside bar at that PDC level while also showing strong volume (dots above/below candle). Target was the previous day's support level. This was a big move that should have been held longer.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.