Another good example of the A/D zero-line acting as support today. First the initial bounce in the first half-hour of trade. Price support ended up corresponding with a -200 reading (mildly bearish). A/D line bounced at zero 3 times later in the afternoon as extreme negative TICKs on higher lows indicated a bullish divergence.
BTU - 2c setup. Later in the day there was the chance of a continued test higher, but ended up scratching at b/e
GS - continued to show strength (or squeeze).
Really disappointed in missing this as I was watching for it yesterday. A channel/flag break in NFLX
Also disappointed for not taking this short in the SPY this morning (2d-to-4c continuation, or simply, a bear flag). Notice that the 15-min 3/10macd (top indicator) showed a lower low while price made a higher low/double-bottom, which gives us a buy divergence, while the 5-minute 3/10macd formed an inverse H&S (as did price).
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.