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

Thursday, July 2, 2009

time to get your drink on

We did manage some reasonable volume on the SPY, but overall total NYSE volume was very weak, so we'll have to see if some higher time-frame buyers step in next week.
I wanted to include an idealized trade here to get short when you're expecting an overall trend day down. Wait for price to return to an "overbought" area that coincides with a level of support/resistance; in this case the upper keltner channel AND R3, AND a round number like $90.50. In this case it might have even been better to wait for volume and TICK to confirm the move (volume represented by the dots above/below the candle).All-in-all, nothing is really confirmed until we close under $89 (a good price for those higher time-frame players to come in at).
From now on I'm going to include a view of the SPY market profile. For today's market, observe how price found support at those "single prints" (the "A's" from 6/25).Have a very fantastic 4th of July weekend!

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