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 toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Tuesday, July 7, 2009

selling continues

Is it seeping in to the collective conscious that these past few months was simply a counter-trend move? We shall see, judging from how we react below this Head & Shoulders neckline.
Price didn't even attempt a test of the Previous Day's High (PDH) and we got yet another trend day down, giving us a close just below the neckline of our head & shoulders pattern.
Price did get a bounce at the Previous Day's Low (PDL), but failed a second test on strong volume.
After a trend day, such as today's market, I'll be watching the low ($88.) from the last hour, and watching how it creates a support/resistance/target level.
This 60-min chart of the SPY looks pretty ruined. Price has closed at an important level (pennies above $88) and the momentum indicator looks like it's ready to build another momentum swing to the downside.
Here's today's market profile on the SPY

5 comments:

Jules said...

Footprints! :-)
What a coincidence. I was just listening to a 27-year-old lady explain the footprint chart. How do you find it so far?

todd said...

I've always liked the concept, since reading "Markets in Profile" ages ago. I find it particularly helpful in noticing really "coiled" markets, where price forms really fat profiles that tend to result in springs in one direction or another. Also, for noticing S/R at single print levels.

Jules said...

I read on another blog sometime back that discusses footprint charts (not Dr Brett) and he kept losing me. Yours definitely look a lot more palatable :-) Yet to figure out what those alphabets mean but I'll take my time going over all your charts :-)
Thanks for sharing them!
BTW, do you pay a subscription fee for these charts?

todd said...

I'll try and do a more thorough post on them sometime in the near future.
The alphabets just represent one segment in time that price traded at that level.
I don't pay a subscription per se. I have Tradestation as my charting and data feed service. This market profile code was found within their forums, someone wrote it and shared with Tradestation users.

Jules said...

I see :-)
Thanks, Todd.
I'm experimenting with volume bars. so far it seems better than 5 mins. just gotta get used to not looking at my clock LOL!