As I recover from a cold I'm feeling slightly less lazy to make a post, so I just wanted to put up the one trade I did take today. I know the adage of "don't trade when you're sick," but when you see a setup like this, you just owe it to yourself to take the trade. I didn't even find this one on my own, a little birdie on my shoulder called it out. Anyway, TSL had a number of things going for it today;
-For one, it was up nicely in an overall down day
-Volume was relatively huge
-It had two momentum pushes to the upside, and looked to be flagging into a probable 3rd
I snapped a 3-point Fibonacci Extension to get an idea for potential upside targets (set my order to get out of half a few cents below the 61.8% extension), while the stop below was kept very tight (a high & tight flag like this should not give up very much footing).
The three horizontal dash lines are my entry fill with an up arrow, and two exit points for a half fill and a stop out. Not a big move, but still a high probability trade setup.
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.