We finally put an end to this over-extended rally. Here were some setups
Like the broad market, most things gaped up this morning and looked very over-extended on their Daily charts.
FCX set up a Head and Shoulders pattern, but on these fast, 1-minute, time frames I need a little more confirmation on a chart pattern. As we got to it's opening range lows price spent 5-minutes getting more and more narrow before breaking down for a gap fill, target being the previous day's resistance level (not shown).As the markets were setting up for a break-down FAZ set up a little flag pattern after an impulse move to the highs of the day. I take a $0.50 gain quickly and trail the rest with a tight stop, and I didn't take the base break later in this chart.POT was a breakdown from it's Lows of the day and a gap fill was evident. The breakdown from the LOD came with strong volume as well, target was both the PDC followed by the PDL.
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.