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.

Saturday, March 31, 2012

Fri. 3_30

GOOG had a nice bearish trend day to it on Friday.  Momentum on the open, pullback in the later morning, momentum continuation in the afternoon.

If one were considering the 10am momentum to be a 3d criteria setup (as it was a buy divergence) you could have gotten long (and price did get as much as a 100% projection off of its flag/seed wave).  There were two main things to remember in such a case; 1). With a 3d setup there is always a resistance zone to trade into and/or overcome, 2). You should trade through or above the 20- &/or 50-MA's;  Notice how the 20-period Moving Average contained any further price movement higher, thereby retaining the trend.

On the topic of the 3d setup, GS had what I often consider a 3d, but in criteria-speak is technically a 1d though the result and mentality behind it are the same (3-pushes to a low, inverse H&S, OR bear trap).

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