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, September 12, 2012

Wed. 9_12

Today's SPY with TICK.

Indications given to TICK divergences at meaningful price levels:
First Up arrow - higher TICK low on lower low in price just above overnight low.
First down arrow - High TICK of the day on a lower price high at the Opening price
Second down arrow - Higher high in price lower high in TICK at the opening swing high and just shy of IB_high.
Second up arrow - Lower low in price higher low in TICK (both sequentially and for the day), hammer candle at overnight low again and near gap fill.

A good example of the A/D-line bouncing at zero

Here's a messy one - this chart is to highlight the 3/10macd and looking to trade a continuation move, which is reflected in the fast line correcting off of the slow line.  A bullish continuation move is labeled A-B-C
while a bearish wave is labeled X-Y-Z.  Essentially, I'm looking to position myself after the "B" point (bullish) in anticipation of at least the C point (re-test), but hopefully more (the continuation).  Likewise, if bearish, I'm looking to position myself around or after the "Y" point, in order to anticipate a re-test of support or continuation beyond.

So, going into this morning we had a gap up (bullish momentum) giving us our "A" point.  We then corrected ("B") then tried to test resistance "C".  The 5-minute chart on the right shows an entry long, which was exited just above vwap after failure of the opening price.
The first down arrow reflects a short entry for anticipation of the "Z"  aspect of an XYZ wave.  More or less a scratch trade.
Second up arrow, a long entry in anticipation of the C1 move resulting from the A1-B1-C1 wave (also inverse H&S (sort of) on 5min).  Not a premium exit, the rejection was pretty quick.
Two down arrows because I scaled back and then went back in between those two bars (amateur).  Fib projection showing price targets.  This short was based on anticipation of the X2-Y2-Z2 wave.

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