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.

Wednesday, May 25, 2011


One of the bullish indications of the 3/10 macd criteria is that of the 1a, where the Slow Line and Fast line are moving higher in unison.  In order to anticipate the potential 1a criteria there are only a select few 3/10 macd combination's that can precede this criteria.
For instance, in this example of DIG these past two days; yesterday we had a big momentum move within the first 30-min followed by oscillation for the rest of the day (but didn't attempt to test below the open).  So, the previous day (Monday) was setting up the 1b condition (15-min chart turned 1b on the last few bars, otherwise it was condition 3b) and the open the next day triggered the 1a condition.  However, if you didn't enter on the open, or within the first 15-min, you would be looking for a pullback later on that didn't materialize into the continuation you might have hoped for.  A clue to this weak follow-through was given on the 5-min chart with the 3/10 slow line turning red (condition 2) before rolling over negative for the rest of the day.
Today, however, was a different story.  Into the close yesterday we had a 2b pullback (15-min chart).  On the open we had a lower price low on a higher momentum reading (buy divergence), while the pullback seen on the 5-min chart showed a steady green slow line and a perfect 1b to 1a long setup.  This agreement between the two time frames is what you would prefer to see:

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