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, September 21, 2012

Fri. 9_21

Down-Sideways-Down, is what we ended up with on this OpEx Friday.
Below, SPY with NYSE TICK and volume.  Notice the sell-off into the close occurred on a TICK divergence.  Just because there is a divergence isn't reason to take (or hold a trade).

A key for the above chart to define the horizontal lines and dots.  For further explanation, see this link: 
Advancing/Declining issues trended down all day, as did Up/Down volume.  The A/D line tried to hold zero, but interesting how up/down volume broke zero and was resisted by it on a pullback.
The 15-min & 5min SPY with 3/10macd.   I got chopped around in the mid-afternoon.  "Setups" taken (on the 15-min chart) were a 2d-2c continuation (bear flag) early morning, and a 3d "failure" which rolled over out of another bear flag.   The long entries taken in the mid afternoon were in anticipation of the 3a criteria, but price was very heavy and couldn't recover the IB_low.

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