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.

Monday, November 22, 2010

Back to the 20MA

SPY bounced at the Lower Median Line again (actually fell within 18-cents) which also coincided with the midpoint of a previous 2x-bar.

intraday look at the SPY which formed a hammer candle 7-cents away from the 2x-bar median line

Fib levels as measured from the most recent high to the corrective low.  Price is basing under that 50% level

The 3/10 Macd has the potential to form a First Cross sell signal here, otherwise we get another momentum push up and possibly turn into a Sell divergence should price make new highs (much the way it signaled a first cross sell in Aug. only to form a buy divergence 5-days later).  We could still push up to the 61.8% - 78.6% retracement on nil momentum and get our First Cross entry on the following tick down in the momentum histogram.

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