Another 3d setup. Was anticipating the potential for this move into yesterday's close. Noticing the indicator setup is secondary, look at what price did in this example:
15-min chart price gaped down, rallied to fill the gap, and closed within the top 1/3rd of it's candle = bullish momentum.
While on the 5-min you have a pattern that resembles a morning star pattern. A gap-down green hammer candle after a trend move down (remember, "trend" is relative) followed by a gap up bullish momentum candle leading to a seed wave.
So, once we have momentum prove itself you look to enter on a pullback, in this case a seed wave. Entry was just above vwap and exit was ahead of the 100% projection at the previous day's breakdown point. The two up arrows on the 5-min chart indicate possible trigger entries.
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.