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.

Tuesday, May 24, 2011

2b entry

Since I've been posting nothing but 3d setups seemingly, how about the reverse of the 3d?  The 2b short setup.
Note: The arrow on the 15-min chart below shows the fast line ticking down only after that long range red bar closes.  Anticipation of this setup is why I laid out the 3/10 criteria to begin with; so you can anticipate this setup before it triggers on the higher time frame and take action on the faster time frame.  The only two realistic probabilites for the 3/10 are for he fast line to continue higher (2a) or lower (2b), and being that momentum is waning the 2b criteria begins to present a favorable risk:reward setup.   

Later in the day AGU set up a nice long trade off of support with a number of bullish markers going for it; hammer candle at the IB-low, on a buy divergence, followed by a seed wave.

I'm starting to think that when I see a seed wave my entry should be the 50% retracement with a stop near the lows.  It would have been the difference of 15-cents in this case.

OXY was a trade that just looked good basing at its highs.  Volume was strong and I especially liked the little shake-out candle prior to the breakout.

The initial breakout had a steep retracement and I should have drawn support/resistance levels before getting in as I would have seen the following resistance band:

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