A sideways consolidation day after yesterday's "trend" day. The one thing to look for on a day like today are momentum divergences in the early-middle of the day.Though the momentum divergence in the very early morning was the first opportunity to short (the gap-up open vs. the impulse move on Monday morning).We closed on the previous day's support/intra-day value area. You can see it looking at the 5-min chart above, or by looking at the Market Profile.
Here's where we stand:
Tomorrow we'll see if we can test previous lows on strong momentum. Otherwise, we put in a higher low on weak momentum and work on a re-test of the highs.
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.