The dollar saw some buying activity, giving the markets a little sell-off.The morning sell-off put in a higher low, while momentum registered a lower low, so I was looking for a "Slingshot" setup.
The green arrow is where I considered buying (close above the 20-EMA). I didn't buy here because, well I guess I'm a dope. The stop would have been either below the lows of the day, or perhaps a bit higher. Either way, it would have given us a Risk:Reward of 2R.
The green horizontal line is my daily support pivot.
For some longer term perspective; the daily shows a somewhat range-bound market on decreasing volume and momentum. No surprises here.The Weekly is sporting three consecutive NR7 bars with the slightest of bearish momentum divergence.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.