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
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Monday, July 2, 2012

Last week's range

The following is the SPY range for the week of June 25-29 including overnight activity.  Blue vertical dash line indicates the regular trading hours open while the fuchsia horizontal lines indicate the overnight high & low.
Monday - straight down out of the gate

Tuesday - attempted breakout of the o/n_high.  Failure pulled price out to the -50% projection before moving directly back to the o/n_high.  Breakout, retest, continuation out to the +100% projection.
Wednesday - tight overnight range (not giving up much from the previous day's close).  Breakout of the o/n_high, pullback test, continuation out to the +150% projection.

Thursday - opened coming into the o/n_low, chopping around it for most of the morning.   Seemed to trend down ever since the o/n_range's high print until the short squeeze.

Friday - trend continued in the o/n session.  After the open price spent a good period of time chopping around the o/n_high before extending higher.

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