Setup this afternoon across many issues. The importance is having reasonable targets in mind and knowing when you're wrong.
CLF - went long in a REALLY stupid entry ($68.85). Sat through the adverse move with the opinion that if it held the 50% retrace I would wait it out, and so it did. Exited the majority of the trade just above (got a lucky pop) the 50% projection ($69.36) for safety sake. Stopped on the remaining 1/4 position just under $69.
A number of issues were setting up the same profile at the same time. These 3d setups trigger on the 5-min chart with a fast line going positive. But if a seed wave has yet to form then it's best to wait for that seed wave before just taking the trigger confirmation on the 3/10macd as you can likely get better Risk:Reward setup around the 50% retrace point (wait for green bar on 5-min at this 50% level).
SPY - notice reverse divergence between previous day's low & today's afternoon low on 15-min chart
There were more, but you get the idea.
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.