Continuation move off of the previous day's late afternoon momentum.
Some points to observe:
1). Opening gap-fill followed by a rally, notice how the A/D pulls back to the zero line, finding support.
2). First failed higher high & low on a waning TICK & A/D line.
3). Price pulls back to vwap on an extreme negative TICK reading (also coinciding with a 50% retracement of the opening momentum, as well as a pullback in the A/D line to +200 support, which is a bit better than neutral, a moderately bullish breadth.
4). Price attempts to extend the rally but fails at the initial lower high's breakdown point.
5). A higher low for both price and TICK at vwap (which coincides with a previous higher low & breakout point). Also continued support at the +200 A/D line leading to a triangle in price.
6). Triangle fails to break higher and A/D line fails to hold support (which then turns to resistance). Leading to an A-B-C corrective wave.
7). Lower lows in TICK higher lows in price. A seed wave forms on a +TICK divergence (support at the A/D zero-line as well).
8) Price rallies higher to test upward breakdown levels (shorts covering as a higher low becomes more confirmed). Also, the A/D line runs back to +200 where it pulls back off of (on an extreme +TICK reading), then attempts to break again, but fails. Price settles nearly to the penny of where it opened. Nothing gained, nothing lost and yet consisting of so much drama.
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.