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.

Tuesday, January 12, 2010

Price Pace

Traded HIG short today and it lends a good example to the concept of price "pace" and the waning interest of buyers in a market (as mentioned in the "Falling Dominoes" post).The two Fibonacci Extensions show a larger cycle projection (red) and a smaller time frame projection (yellow) for potential targets. When a confluence exists between two or more cycles you get good areas for support/resistance.
On the flip side there was FAZ today. I didn't trade it, as I was too late in seeing it. But here you can see the lack of selling interest, before price began to accelerate. In looking at it though, it may have been a tricky to trade in terms of a target, unless you just went for the HOD or previous support level at $17.50.

1 comment:

Tony said...

Are you seeing any wolfe waves lately?

Have you seen anything on the optimum risk/reward point for entry? The 2-4 trend line?