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
I am always open to questions, comments, or suggestions on how to improve this blog.

Friday, January 8, 2010


PCX demonstrated a setup over these last few months that I first learned about within Toni Hansen's material. Price was in a recognizable consolidation range after an initial impulse push. After testing the highs for the second time price again sold off, but this time found buyers about half way into the existing range before breaking out and fulfilling a measured move up.
Keep an eye out for this pattern on all time frames and look to buy/short the first solid bar after the shallower retracement within the range, or just wait for the breakout/down.

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