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.

Saturday, July 10, 2010

HES short

A look at a short taken in HES on Friday.
Taken because of what I saw on the faster time frame, but I'll start with what may be helpful to look for on the slower time frame.
Missed the original breakdown move from the early session, but it did demonstrate nice measured moves throughout the day.
13-min chart
I just happened across HES while it was at it's LOD and started watching it closer as it was making it's second bounce off of the $52.25 area.
The fact that price was at it's LOD while the majority of the market was Up drew my attention. But when I saw this pattern on the fast time frame I was looking to get short with a very tight $0.12) stop. Curious how price formed the same pattern at support before the breakdown as it did into resistance on the consolidation post-$53.25 breakdown (a mirror image). Also nice how the measured move from the breakdown of the bearish wedge also happened to coincide with the PDL, giving an encouraging target.

Entries & Exits:

No comments: