When the 2c-2d fails:
There comes a time when buying the dip in a trend doesn't work out. Today was such an example; where the 2c-2d buy setup turns into a 4c short setup.
Coming into 11:30 (CST) we had a 2c-2d criteria which was also a momentum buy divergence. We got a buy signal (following the 3d setup on the 5-min chart) but price failed at resistance and rolled over. This roll-over turned into a 4c short setup on the 15-min chart.
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.