XLE was a good 3d setup. Price formed a cup w. handle pattern while the trigger came about at the end of the handle. Two ways to measure for a target; measure A-to-B as indicated on the 15-min chart (correction; the 'A' should be 4 bars over, being that it's a double bottom the extension is the same). The other measurement indicated on the 5-minute chart is a seed wave. Otherwise the PDL was a realistic target without using Fib.s.
I traded BHI today very briefly, but not to the extent that it set up as indicated. The gap down was a strong impulse that created a reverse divergence. What followed was a seed wave where price succeeded in reaching a 100% extension. The 5-min chart set up a First Cross long entry where the Slow line goes positive just as the fast line is correcting into it:
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.