The first hour's Total NYSE volume today was quite large (over 500k). By looking at this first hour's reading we get a clue when higher time frame traders (institutions et al.) have entered the market. Here's what it looked like this morning:
Since the "bottom" of this market in March '09 there have been only 5 instances where the first hour's Total NYSE volume was larger. The most recent being in December where we got a dummy long trade setup (a dragonfly doji in an area where price snapped back twice before). Three other occasions marked intermediate term tops. Also curious, is the fact that we got a large move in Treasuries on Tuesday and Thursday. Are the "Jaws of Death" beginning to clamp down?
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.