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, August 4, 2009

seen any bears lately?

Don't hate it, just trade it! That's my motto from now on.
We just keep pushing up on little to no momentum.The 60-min chart looks like it may be setting up for another momentum push higher
We gaped down this morning, but as price was testing the lows TICK wasn't overly bearish. We filled the gap, put in a higher low while the TICK put in a lower low, giving us a bullish divergence. We did chop around the previous day's close before continuing higher. Each TICK back to negative territory was a good opportunity to buy the dips.
We based around the highs before breaking down. Again, price tested the selloff-lows on a higher TICK, taking us higher into the close.
Here's the 5-min chart. First, the Support (green horizontal line) & Resistance (red horizontal line) envelopes. Price touched our Support line, but the following 20-minutes following the opening low couldn't test that level again. We can see also how the ensuing highs through the day were showing a bearish momentum divergence. The correction off of the highs (nervous selling) put in an ever so slightly lower momentum reading, giving us a subtle slingshot setup long. Finally, we can see the bullish momentum divergence on the lows around 3:30 p.m. I'm not sure whether the last 10-minutes was a short-squeeze or aggressive buying.Meanwhile:

FCX based along my support envelope before breaking down to the previous day's gaping candle.Today I owned RIMM. I mentioned yesterday being on the look-out for a long setup above $77. $77 was blown through early and continued on until it flagged at my resistance envelope line. Price ran to an even $80, touching a previous support level on the higher time frame.
The highs were met on a decaying momentum divergence, also a Head & Shoulders setup. The retracement out of the H&S breakdown found support at a 50% Fib. retracement (not shown).

4 comments:

Day Tradr said...

Did you take the short in RIMM too?

todd said...

Not only did I take the short, but I covered and shorted AGAIN after the retracement up. I owned it! :)

Day Tradr said...

Great!

NYC Trader said...

Great trade Todd! Missed RIMM and ARE over 40.