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.

Friday, August 24, 2012


Just because there exists a divergence doesn't mean price can't continue higher.  A perfect example of that today in the SPY and the NYSE TICK.
Sorry for the busy chart.  As an aside,  the first highlighted region on the TICK chart was not a divergence.  What followed, were TICK divergences, which led to subtle price pullbacks but ultimately continued breaking out.  Notice how TICK held the zero-line on each pullback.

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