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.

Sunday, April 17, 2011

Talk My Book

For the case of MON short
First the weekly:
A Falling Three Method Candle pattern and the past week was rejected from a 2x momentum bar

Doing some Fib. Projections;
-Measuring A to B and projecting off of C to get a 50% projection.
-Measuring C to D and taking the 50% projection and
-Taking a 100% extension of C to D we get a confluence of resistance that was quite thoroughly tested.  While eyeballing a support level $62 area was a fair resistance point previously:

On the Daily we have:
-A bear flag
-Strong volume on the sell-off
-3/10 macd signaling a first cross sell signal (4c criteria).
Below price we have the 200-day MA and a 50% midpoint from a 2x momentum day, right around the $62 level.

Adding some Fibonacci projections:
A-B-C 100% extension
C-D 50% projection
D-E 100% projection
All converge at the 200-MA  & 2x momentum bar midpoint at the $62 level.

No comments: