Glad this week is over, now we can see some movement next week in whatever direction we take. Despite being a quadruple witching day we did see some textbook patterns show up.
After the initial selling we got a big green bar followed by successive coiling that ended in a measured move down.
After the completion of a measured move (which happened to coincide with the 50-EMA on our 30-min chart!!) we had a buy divergence that came with a big rush of volume (buy the dip!). Today my support pivot acted as resistance (I love these pivots!).Here's how I marked up my 1-min chart today with the NYSE TICK in the sub-chart.I suspect this overhead gap on the SPY is going to be shorted pretty heavily.
I had a decent day with FCX today (short and long). I also keep S/R pivots for this issue; the support level acted as resistance perfectly. You have to train yourself to buy that momentum divergence whenever you see it.
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.