Friday being a trend day, we followed through to Monday with a narrow range "z-day" (consolidation/oscillating day). A pointer (as far as L. Raschke teaches anyway) for these z-days is to watch the last hour's low (in the case of a trend day up) for potential support (or the most significant swing low in that 3:00pm area). In today's case, we came close, but didn't quite test that last hour trend day low.If you're able to stand the noise and focus on objectives, a z-day may also entail fading strength/weakness by perhaps using Bollinger Bands as a guide. While today's early morning range was very choppy between the highs and the Open, the lows of the day were put in near Friday's last hour low in the form of a Phoenix setup.
Today was a day where we just oscillated around vwap, so it may have been a good strategy to just play the extremes away from vwap by looking for TICK divergences and cover when reverting to the mean.
The first divergence of the day was a reverse divergence (higher TICK highs corresponding with lower price highs). The "Phoenix setup mentioned above was done on a TICK buy divergence, while the later afternoon test of the highs registered a TICK sell divergence.
I was alerted (reading the starwealth blog) to the fact that we may find ourselves in a bearish Wolfe Wave pattern. If this is the case we need to see a strong volume push (at the very least) into this 5-point, around $115.
After looking at the chart above I wanted to add in the Stevenson PTT for old time sake, because the cycles really jump out at you. Currently we're in an Inverted Cycle and it's a toss-up as to which will be achieved first; the breach of the CTL beginning a Regular Cycle down, or the Price & Time Target at the $116 level (read more about how these targets and triggers are obtained by reading the link above for Stevenson PTT.
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.