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
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Monday, November 14, 2011

gap down

A gap down below one of Friday's support levels.  Continued rejection of the Open as we went sideways for over 2-hours on the SPY leading to a break down to test previous support; reaching a 200% projection of the Open vs. Previous day's Close on a momentum buy divergence.  Toward the end of the day we got a 3d long entry (3-pushes to a low) on tweezer lows. 
5 trade entries today ("R" based on the ATR of the 5-min chart):
1. Short stopped out at slightly higher than b/e.
2. Short worked for 3R.  Was looking for the 4d-4c continuation short as I was in the first trade.
3. Stopped out full (1R).  Looking for re-test of lows.
4. Short worked for 3R.  Looking for re-test of lows
5. Based on 3d long entry.  Exited full at the 50% projection because I thought we might roll over with the strength in TLT.  But price tagged the 100% projection anyway (was a 3R trade as well).

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