As could have been expected, today's day followed Friday's trend day. The SPY gaped down to S2, rallied back up to nearly fill the gap where it was met with resistance from the previous sessions lows.
The move down gave a nice buy divergence this morning at S2. Later in the day though brought on some nasty fake-out moves in both directions.The plan for a z-day is to buy a bullish divergence at the extreme of the keltner channel, and play for a move back up to either the mid-line and/or the upper keltner channel.
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.