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.
Monday, July 27, 2009
SPY closed at the highest point of the most recent range. Our momentum indicator is telling us to prepare for possible downside or a blow-off top.On the 5-min chart below I have marked our buy and sell envelope lines. Price hit our sell envelope (over-shot by 2-cents) on a momentum sell divergence and came back within our previous day's closing range.Here's how I marked my 1-min chart of the SPY today. Early morning resistance was the Previous Day's Close. The low of the day was built on an inverse head and shoulders type of buy divergence.That's all I have for the moment. I'm actually pretty drained from a busy weekend preparing for a big move out of state.