Going into yesterday's close there were a number of stocks that I watch setting up the 2b criteria. The exact opposite of the 3d criteria. It is what it is. If you're confused and care to dig deeper, all of the documents in the sidebar to the right explain my approach, particularly regarding the 3/10 MACD oscillator.
So, like yesterday, being that the gap down was pretty steep the 2b criteria was pretty much complete with the opening gap down. So, there will either be a pullback that is shorted or a rally that will cause dip buyers to come in later in the morning. In terms of the 3/10macd, what set up this morning was the 4c to 4d continuation short which triggers on the 5-minute chart as the 4c criteria.
Look to breakout points and what price does when it returns to those points for clues.
Speaking of 2b short setup. It was triggered a while ago on the SPY weekly chart
Two more 4d short setups. The 4c condition exists, so you're anticipating 4d to trigger by watching the 5-minute 3/10 macd to turn bearish.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.