After spending way too much time in New Jersey for the holiday's I'm now back and left having to reconfigure workspaces and watchlists lately after losing most of it to a recent system upgrade. But it feels good getting back into the swing of things.
The markets are regaining some vigor now that we're starting a new year. Compared to the micro-range drift we were experiencing for most of December. Yesterday stopped a lot of shorts out, while today faked a lot of longs out. You have to shake out the rug before deciding where it will go:
Yesterday being a bullish bar, long's were eager to trade a breakout, resulting in a mild sell-off early on when that breakout failed. Price found support around the 50% retracement measured off of the previous day's High to Low:
A few TICK divergences:
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.