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, March 7, 2012

50% retrace

The major (cash) indices all finished the day with harami candle patterns and the QQQ showed a morning star candle pattern.  Nothing to get bullish about at this point as all we have done is retrace about 50% of the previous downward momentum, but it leaves a bullish scenario on the table.

The QQQ filled yesterday's gap which coincided to a 50% retrace of last Friday's high to yesterday's low.  A bullish scenario would see price go above $64.40, while a bearish scenario would be to see price sell below $63.75.  Currently we can view this chart as having a potential inverse Head & Shoulders setup:

Here's the Dow Jones spot market showing a 50% retrace of the previous momentum

The SPY has a bit of a rising wedge look to it as price came close to a 50% retrace of yesterday's gap

and the IWM held its 50-day MA and retraced back to the previous day's open where price looks to have a cup w/ handle pattern look to it

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