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, October 19, 2011


The 2b or 2d-2c criteria are indicative of good topping patterns to look out for.  Just as the 3d will draw my attention to a potential bottom, this criteria hints at an impending top (defining tops/bottoms are dependent upon your time frame).  First thing I would like to see is price closing, or attempting to close under the 20MA on the 15min chart.  Today price rode the 20MA for over two hours before breaking down from its pennant pattern.
Three exits with a final portion (15%) held overnight (stop above $123).

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