Don't be left holding the bag.
Price bases at resistance (in the following examples, could just as well be support)
Anxious gamblers jump all over the bid to get in at the base (b/c "it's going to break out")
Price retraces to shake out said gamblers before continuing higher.
RIG : Yellow dot line is the day's Open coinciding with previous day's support (now turned resistance). A good example of why not to buy the breakout itself, but to wait for a retrace.
MON: a great example of what to look for, including the volume coming in at the retrace once the breakout occurred.
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.