Nothing to get too excited over, just biding time until we get a dip far enough to interest buyers.
Today's sell-off extended to the lows reached on Sept. 14. which coincided with a 38% Fib. retracement from the lows of Sept. 3rd to the highs of Sept. 17th.
We gaped up slightly, consolidated, returned to the previous day's close (scalp short entry!) where the selling ensued. Notice how price consolidates for the first 35-minutes, but once the pile has been stacked price just slices through the previous day's low/close decisively. A Fib. extension snapped between my S/R pivots gave a good general level of expected exhaustion today.Remember what to look for to expect a trend day.
Here's a chart of the day and a lesson in when to recognize a short covering squeeze.
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.