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.

Saturday, August 20, 2011

SPY monthly chart; only 3-times in the past 11-years that it set up a 2c short bias (there was another occurrence in 09/2004 which was faded).  Each occurrence carried with it a monthly candle range of greater than 10% and was just the beginning of a larger downside move.

Bear in mind, what followed these large range moves was at least two months of price testing the upper ranges of these candles
At the end of 2000 there was a 2-3 month test upwards to the 61.8% retracement

While in 2008 there was a 4-month period which saw a successful re-test of the low and a bounce beyond the 78% retrace, ultimately failing.

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