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, October 5, 2010


Price has trended up to this resistance level over the course of nearly 6 weeks.
 In that time there has only been one correction that returned 100% or more of it's initial impulse momentum move, like so:

 Taking that largest correction range we can add it to future momentum moves to determine valid breakouts, like so: (note, decisions based on a daily candle require the close of the daily candle.  Therefore, the breakout on 9/30 was determined to be false; leading shorts into positions.  We were then able to move the largest momentum box up to 9/30's high and wait for the low of that box range to be broken.  Of course it stopped dead on the lower boundary , but shorts were still in positions.  Said shorts were squeezed today). 

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