SPY formed a "Spike & Ledge" pattern this morning on a test of new 52-week highs.
The pattern was coined in Linda Raschke's book Street Smarts, below are links to other articles relating to this climax pattern. Price set up perfectly on top of the PDH before flagging and selling off.
http://www.scribd.com/doc/2532983/Break-Out-Strategy (page 12)
http://www.trading-naked.com/library/raschke-linda%20raschke%20-%20keeps%20up%20the%20pace.pdf (page 5)
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.