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 18, 2011

more setups

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:

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