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, October 1, 2011

bulls denied

Oh well, the bulls just couldn't pull it off. Price looked like it might break out of this down trend line, but each test was sold.
 Price closed right on the 78.6% retrace, so the only thing saving this market now seems to be a double-bottom.
The daily charts 3/10macd has been showing 4d criteria (pullback following bearish momentum).  So the anticipation would be for bearish continuation (4c) or a squeeze to test higher resistance (3a).  In order to anticipate this daily chart setup we use a some faster timeframe, I like to use a 130-minute chart because there are three 130-minute bars that make up a day.
So, if you're looking to swing trade this setup (4d-to-4c continuation) the entry came on Thursday like so;

At this point it's important to watch for a bullish divergence as price tests support.  The faster time frames will give clues.

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