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.

Monday, April 11, 2011


Exited a short trade in CVX this afternoon, while getting lunch, rather than just keeping my stop in place.  Entered later on 4c pullack criteria for 50-cents:

The SPY demonstrated the same setup.  All I'm using the 3/10 macd for is to help me pick out price behavior; in this case a bear flag after downward momentum.

Below is a 3d setup (triggered end of day Friday) I was looking for this morning, but didn't enter.  I've mentioned before that the 3d criteria personifies a short-squeeze reaction.  This chart is a good example as price opened near resistance, filled the gap and moved beyond the sensible stop placement resistance level and continuing up to the breakdown point of the previous day:

I went long VLO on the 3d entry today (chart below) but it turned into a scratch trade.  Notice the resistance level price needed to break to induce a squeeze reaction (blue horizontal line on the 15-min chart).  Price failed to hold above the Open let alone get beyond the likely short entry stops.  When 3d setups fail it's usually a good idea to turn the other way and go short!

1 comment:

Tim Bourquin said...

Todd -

I wanted to see if I could interview you for my trading website where I talk with traders about how they find good opportunities in the market.

Would you mind emailing me and I can give you the details?

All the best,