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
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Sunday, January 15, 2012

Worth Watching

Going into this next week or two I'll be watching for AMZN long entries.
The higher time frames have a strong trend in place, with trend line support.  The recent downside momentum was the largest ever, which could be an omen for things to come.  However, this shows itself as a reverse divergence on the higher (monthly) time frame which often leads to snap-back rallies (which may or may not form its first lower high).
Monthly:  Trend intact, reverse divergence (2c criteria).

Weekly:  Trend line holding on a small divergence

Daily & intra-day charts:
The daily has an inverse H&S pattern on diverging momentum (setting up a possible 3d setup).  Certainly wouldn't want to see it give up $170 below (actually wouldn't want to see it fail the 50% Fib retracement of the Head to right shoulder).  The first hurdle above will likely come from the $182.76 level.
Primary target $199, secondary $216.  Essentially I'd like to see a break of the overhead trend line on a strong momentum bar.

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