Following a momentum gap up yesterday, price consolidated for most of the day within the previous range.
Two support levels throughout the day included initially the 38.2% retracement (measured off of Tuesday's close to include the momentum gap, up to yesterday's momentum high), followed by the 50% retracement.
A trade setup which I did not take follows. I didn't take it b/c the risk/reward seemed lacking, nonetheless it was reasonably valid.
Price found support at the previous day's Open which coincided with a 61.8% retracement measured off of the previous day's High/Low range. Afterward, price formed a seed wave where you could have bought the break ($128.39) with a target of a 50% or 100% extension (which coincided with the Open and PDC) as indicated:
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.