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
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Monday, November 15, 2010

Monday SPY intraday

A look at the SPY for Monday 11.15
Price retraced 61.8% between the high of 11.11 and the low of Friday 11.12
  So, we gaped up this morning (upward momentum).  Drawing a Fib. retracement line off of the close on Friday and today's Open what do we see:
- Following the gap up momentum, price wicked the 50% retracement before returning to the Open.  NOTE: The above chart uses the closing time of 4:15 EST.  Using a closing time of 4EST  we get a nearly 100% retracement after the open and a 100% extension, the proportions of momentum and it's extension do not change).
- As price returned to the open the upward gap momentum carried us to a 50% extension.

The 15-min chart shows two strong bars early in the day (the green bar being a 2x-bar).  Notice the midpoint of these bars and their respective Support/Resistance qualities.

Using the squiggly line tool, we only really got one signal out of it today, that being a sell divergence (which would have been a test to sit through).

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