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.

Thursday, November 24, 2011


One of highest probability trades out there;  entering on a pullback of strongly trending price (I added the ADX in there to show the degree of trend in case it's not obvious from the Moving Averages, but it can be useful as a component for an intraday scan).
The vertical lines on the 5-min chart indicate possible triggers to entry (if you need an indicator for that) or for a more aggressive entry, one could fade a red fast line reading on the 5-min.   The best entries coincide with a pullback to the origin of the breakout (notice the large reverse divergence on the 5-min chart).
Of the 4 vertical lines (entries), only 1 would have resulted in a loss or break-even trade.  The third entry never hit the ATR stop placement. 

The SPY didn't have as strong of an ADX reading as that of TLT but still provided the same concept as that above.  Look to fade higher price (green fast line)

But look to fade it in an area that corresponds with what can be considered a resistance level or overbought conditions (extreme TICK).
As the fast line goes green the first time a test of vwap corresponded to a new TICK high which was faded (though the payoff was a higher low).  The second push higher tested the 9:15 breakdown point on extreme TICKs and went to test the lows.

As an aside, I did take the 3d long entry towards the end of the day.  Price went beyond my stop by 4-cents before hitting both the 50% & 100% projections (though be it in a very choppy move).

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