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, April 25, 2012

Similarities, then and now

I have posted before the similarities that exist in the current market environment with those going back to late 2010 - early 2011.
Here is the SPY going back to 2010 where we had a narrow channel, leading to a "W" pattern correction, resulting in measured move and nearly identical narrow price channel.

Here is the current environment where we have seen the similar narrow price channel which we have recently corrected out of and what looks like a "W" corrective pattern

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