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.

Wednesday, June 3, 2009

Wed 06_03

A pop above the 200-MA followed by a retrace back to the moving average. What's curious to me is the bearish momentum divergence.We popped back above previous resistance, where we sit in no-man's land.
Today's theme was a gap below S2, a retrace to the 20-EMA followed by continuation.Got my gap-fill in FCX todayThe target was previous base resistanceThe majority of the move down was outside of the keltner channel. The initial move was a perfect example of price falling out of the channel, with a fantastic entry back at the 20-EMA retrace. The bottom was marked by a momentum divergence. Should have gone long on that first big green momentum push following the divergence (green vertical on the histogram).
One thing I don't trade off of but am seriously reconsidering is the following setup (based on cycles from this previous post). Using a share bar chart and taking trades based on the Overbought/Oversold fade. So, when all cycles line up turning down from Overbought in sync to sell (turning up from Oversold in sync to buy). It's not perfect, but what is?This chart in FCX would have kept me out of the losing trade I took short yesterday.

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