Similar market behavior as the previous day where fading extreme negative TICK readings (-800 with volume support) throughout the day worked well.
Gap-down selling found support (again) at the previous week's Open, coinciding with a demand level from the day before as well as a 100% projection off of the gap (previous day's Close to today's Open).
Earlier in the week I highlighted the 2c setup and the reverse divergence, which is what we got this morning. Notice how the 5-min 3/10 macd forms a 3-push divergence and then triggers a 3d setup giving us a seed wave.
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.