A gap up, sideways consolidation, followed by a gap-fill. The lows keep getting bought, and these recent lows are barely dipping into the previous day's range.R2 and Thursday's highs provided initial support on our gap-fill, but a break-down found the lows of the day at previous day's resistance (RbS; Resistance becomes Support).
The SPY opening range looked a lot like this short opportunity in FCX this morning. It was frustrating to sit through a half-hour of this back-testing of support before falling lower.I got robbed in PWRD today, robbed!! :)
Price based around $35, forming a cup w. handle pattern. I got in at $34.99, we continued to base, then a single print moved up 0.20, before whipping back down and taking out my stop. It was a tight stop ($0.15), so the loss was minimal, I figure a set-up like this will either accelerate or fail, in which case if it fails there's no need wasting time waiting for price to possibly come back to the base.
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.