...and how it directs price.
Pay close attention to impulse moves (wide ranging moves) and the reaction to them!
Try not to get caught up too often with too many technical indicators. Take a step back and try to listen to the auction process taking place in front of you. Try to hear the prices being called out as if the pit were right there; how fast does the cadence move away from a certain price?
Just look at some of these charts from today and run the tape through your mind.
Look at how perfectly RIMM trended down all day long....why wasn't I on board this one?!?AAPL; may look messy, but the setups were there.FCX; looks like a constellation!!! What a beauty!
POT; another solid downtrend! Try to tune the noise out!
Pay special attention to how the "auction process" behaves around the Open price, as well as the Previous day's High/Low/Close.
GS; what a vicious entity.
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.