My plan for this morning included instructions to short POT at $92. Here's how it played out:
Looking at the daily chart I noticed POT was approaching overhead resistance at its 50-EMA after bouncing off of the lower keltner channel band. The previous two sessions met with resistance via the 20-EMA, while this morning saw a substantial gap up (+1.75%) right into the 50-ema.This setup had a couple of other things going for it as well, namely my resistance pivot for today was $91.92 (close enough!), also the 30-min chart showed off overhead resistance at that $92 area. Notice also the higher price high and lower momentum high.The 5-min chart set up a triangle right into the $92 price. I covered at the 20EMA on the 5-min chart.
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
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