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.

Tuesday, February 28, 2012

Tues. 2_28

An example of a short trade followed by a long trade in the SPY today.
2b-2c short setup entered on the down arrow and exited at each Fib. extension for a total of 4 exits.

This then led to the 2c-2d long setup.  The trend held and the higher low was on lower momentum (reverse divergence).  Again, there was one long entry, followed by 4 exits at each Fib. target.

Worth noticing was how the "sell-off" corresponded to a failure of the A/D-line's zero-line on a low TICK of the day (dash vertical line just past the 12:30 hour).  Price (and the A/D-line) then stabilized on higher TICK lows.

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