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


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.

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