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, August 29, 2012

SPY replay

Here is a 5-min chart of the SPY with TICK.

Here is a key for the above charts so you know what the lines and dots represent:
The numbers are there to highlight the following:
1). An attempted break from the opening swing on very marginal TICK.
2). Higher TICK high, lower price highs (reverse div.).
3). A test of the overnight lows which occurs on a positive TICK divergence.
4). Higher TICK highs on the re-test of previous selling point, but notice how price stabilizes as TICK pulls back to the zero-line.
5).  Higher price highs (to a 25% projection of the overnight range) on lower TICK highs (negative divergence).  

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