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.

Wednesday, February 8, 2012

ES 3d

Two examples of the 3d setup in the ES these past two days (coming into the open) with two different results.
First, Tuesday morning

Then coming into this morning.  Though the 50% projection was achieved any further follow-through was capped off by resistance.  When the 3d setup rolls-over it's often a good idea to reverse the trade and anticipate a lower low.


alternative investments said...

If its a good time to reverse the low, does that mean its time to sell? As a day trader, I have just recently gotten into reading charts. Have always worked on instinct and trying to anticipate how macro news will affect the next day's open - i.e. buy at closing based on what the news out of Greece or the next employment report will be. I guess this chart means sell if a lower low is anticipated?

todd said...

Perhaps I should clarify. For me it means lower prices are possible beyond the previous swing low only, but with a clear idea of where I anticipate support to be. In the example where price rolled over, I had support at 1337.75 but the low came in at 1338.25. I was also aware that the higher time frame was still bullish, so I wasn't looking for a sell-off, just a test of a lower support point.
Hope that clarifies things.