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.

Wednesday, December 1, 2010

turn your head and cough

Shorts squeezed again!  lol
Right back into our pitchfork, safe and sound

Price opened just under the 20-day MA, which coincided with the 50% retracement of our most recent swing highs/lows.  A strong breakout candle, a close above the 61.8% retracement and a W-bottom pattern breakout set up today.

Price gaped up big today and didn't go any further than a 50% extension based off the Previous day's Close to today's Open.  This also coincided with a 150% extension as measured off of the previous day's range (low to high):

Being that the year is in it's last month, take a look and see where we are on the grand scale.  The S&P500 yearly chart puts us right under a confluence of resistance; the 23.6% level from the 1960 lows to the 2007 Highs and a 61.8% level from the '07 Highs to '09 Lows

However...The more times price tests Resistance...
amazing how well that 50% level was our S/R zone

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