Narrow range whipsaw day today. At least today was a doji and not a bullish engulfing candle (that would have certainly spun my head around). I'm guessing that the fact that today was the last day of July had something to do with the bulls controlling the lows of the day. Considering the U.S. Dollar had a considerably bearish day, I thought that would give the bulls reason to be even more aggressive today.
We gaped down ever so slightly this morning, but quickly returned to the previous day's close, which lent itself to a quick long scalp targeting the previous day's late day consolidation level. The ensuing selling did eventually test Wednesday's highs, where bids were quickly lifted. The rest of the day was a triangular consolidation that broke out to test the highs. Nothing much more than a whipsaw day.
The green horizontal line represents a support level that held nicely throughout the day.Well, the Daily chart doesn't look very strong here does it?I'm just including this hourly chart for the heck of it, the rectangular highlights are just my way of keeping track of sideways consolidation patterns that typically precede breakouts.I was watching RIMM today and as you can see it fiddled around with $77 all day long, the breakdown was imminent at the end of the day and price stop right on top of my support level (to the penny!!).So, tell me, would you buy this chart below?
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
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