Just some examples of the 3d setup which ocurred today.
The main prerequisite is that the negative slow line has a nice trend/slope to it. They can happen at any time, but I find that they often set up mostly around the 1:00-2:00 CST hour or can carry in to the next session.
GS - The better of the 3. A double-bottom put in by an inverted hammer that was also a tweezer candle pattern. The entry (fast line turning green on the 5-min chart) was never re-tested.
STT - I have 3 arrows (5-min chart) for 3 possible entries; a tick up in the fast line of the 3/10 macd (aggressive), waiting for the fast line to turn green (second arrow), or waiting for the resistance level to be broken above vwap. Whichever way played it would have been a challenge.
POT - one I actually got involved with. The slow line on the 15-min chart didn't have much of a trend to it. The first arrow (5-min chart) was where I placed a limit order, that was touched but never filled. I failed to come back to this later in the day even though I was aware of the ascending triangle it was forming.
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.