Thursday MON printed a 2x bar (real body 2x or more greater than the previous real body), and on Friday it demonstrated how well price respected the 50% retracement level as a pivot. I'm still on the fence of where to draw the Fib lines from (either the extreme High/Low, or from Open to Close, it may just depend on how much wick is involved in the candle).
Going back a few days, MON had a momentum run and while price has yet to close lower than 50% of that momentum run's range, it does keep dipping lower.
The 50% retracement as measured from the High to Low framed price nicely on Friday, bouncing from it before failing it. The fib lines drawn from the Open to Close put the 50% line 13-cents higher.
Also worth noting: Price gaped down and had a weak rally attempt to fill this gap wherein price failed the Open (yellow line), the return test of the Open was an Ideal short entry. Meanwhile, as price flirted with the previous day's 50% retracement we got a basing pattern with very little upward testing (aside from the final stop sweep before trading lower)
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.