Today's late day rally left us with a hanging man on the Daily chart. Whether or not we'll resolve that candlestick pattern to the downside still remains in question. It seems the obvious lately isn't so obvious. It seems all too perfect doesn't it? That we gap up within dimes of our previous highs and print a hanging man, it would be all too perfect to short from here, alas we'll have to let it prove itself out.
This morning's sell-off came to a low right around previous Resistance/Support coinciding with S1. A 3-push momentum divergence built up, forming an inverted Head & Shoulders where we rallied back to R1 (also previous support).
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.