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.

Thursday, March 29, 2012

Thurs. 3_29

Updated from below:
Well, AMZN failed to breakout from its previous resistance zone from Thursday which would be an important factor in whether to hold a swing position.
As the 2d is an anticipation of trend continuation the previous day's high was essential to overcome.  Rejection of this level was reason to erase a long bias.  As the higher time frame's ascending triangle became more apparent, the faster time frame set up a 2b short criteria as price closed right at the trend line of the wedge.

I have been experimenting with day trading higher time frame setups.  So here was one taken in AMZN today.
The higher time frame setup here being the 2d criteria on the hourly chart (I use the 65 minute).  There were 3 potential entries on the trigger chart (20-min) for a swing trade entry (up arrows on the 20-min chart).

For day trading purposes however I'm looking at a still faster time frame (5-minute in this case, you could even use a 6-min chart to keep the 1:3 setup:trigger ratio since there are 65 6-minute bars in 1 trading day).
I missed the entry on the open which was a strong breakout of the previous day's resistance zone which quickly tagged all of the Fib. projections:

I did trade the late day setup which, again, was a breakout of the overhead resistance zone.  My exits (down arrows) were not based on the Fib. projections this time, but instead based on intra-day resistance/supply levels.   I'll update this chart to see how the swing trade worked out (or didn't work out).

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