A scalp trade this morning in AAPL that I missed;
AAPL opened on top of its 20-EMA on the 15min chart. While the previous day saw a sell-off followed by an impulse move and slight retracement into the close (giving it a bull flag look). So, we're looking for a continuation of the impulse move going into today with a potential test of the highs.
What I did yesterday was draw a Fib. Extension line from the pivot low-to high-to low which gives us a potential target going into the next day. It so happened that the Fibs projected a 100% retracement up to Wednesday's highs (score 1 for confluence!).
While letting the first 15-minutes take its course we look for 3 things; a place to buy, a place to sell, and a place to run (in case it goes against us). With the first 15-minutes gone I put Fib. retracement lines across from High to Low and see if the bullish retracements hold (above 61.8%) and to see if a projection coincides with my theory (test of PDH). It so happened that the 127.2% external Fib. retracement lined up in that same PDH area (score 2 for confluence!).
So, on this smaller time frame I was looking to buy the 200SMA, sell the PDH, and run from the PDC if it went against me. It was, at it's worst, a $0.50 risk for a $1.00 gain. Unfortunately I blinked and price ran without me.
This 2-min chart is a bit noisy, just let your eyes soften and it may get clearer :)
While the higher time frame shows the support you had (in terms of the 20-EMA), as well as the flag setup from the previous day.
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.