Starting with the yearly chart;
large downward momentum (2008)
lower low (2009)
untested highs within 24% of current price. Thinking forward to the 2011 candle, it would appear that price could either roll over or make a charge for new highs
price was sold around the midpoint of the previous downward momentum bar.
coincides with the 61.8% Fib retracement
The monthly looks to have potential to test up to 12,000, in which case the current bar on the yearly chart might end up looking like that of the previous bar, though with smaller range. Should we get up into the 12,000 level, there may be a lot of exuberance to test higher.
The weekly gave us this nearly completed wave, with a 100% extension just under the previous lows. With price only off of the 2010 highs by 3.8% things could take off if price works off the immediate overhead supply.
While the daily has seen two strong bullish momentum candles that have found buyers within the "dip" range
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.