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.

Monday, January 23, 2012

wave 3

A seed wave is a momentum move that follows a down trend which forms its first higher low, sending prices higher.  Since the March '09 lows we have had 3 such seed waves.
The second seed wave coming off of the July 2010 lows has already run its course culminating at the 200% Fib. projection.  The other two, however, are still in play. 
Wave 1's 150% projection lines up with the Wave 3 50% projection around the $140 mark.  While the 200% projection of Wave 1 has a $154 target, nearly lining up with the 100% projection of Wave 3.

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