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.

Monday, August 15, 2011

higher time frame

The SPY higher time frame set up the 3d criteria on the 10th & 11th of last week; here's how it played out (I use the 60- & 20-min just as I would the 15- & 5-min on the faster time frame.  Preferences are your own).

The fib. projections on the 60-min are based off of the hammer candle's low and the ensuing rally high.
The first entry was successful so long as you trailed your stops as late day selling shook out weak longs.
The second entry turned into a nice trend day; of course you would had to have sat through an hour and a half while the handle to the cup pattern traced itself out.  Here's a closer look:

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