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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Friday, October 5, 2012

Fri. 10_05

SPY fades
Once the overnight range midpoint gave up, the selling didn't give up.  TICK divergences can "work" to the extent that one realizes when price is not confirming the divergence.  In other words, you need to be able to read price bars to decipher strength or weakness.

A key for the above chart to define the horizontal lines and dots.  For further explanation, see this link:   

While Advance/Decline trended down for the day, the Up/Down volume tried to get something going, but once giving up the IB_low after noon the Up/Down volume went decisively negative

15min & 5min with 3/10macd.  The pullback of the fast line into the slow line, translating to the bear flag (2d-2c continuation).  Had to try the early morning range breakout, and the 2c-2d long around 11:30.  Also tried scalping long the previous day's high bounce and two lower supports, one of which was $145.70 which I didn't get filled on.

Here is a previously posted chart of the SPY 30-min with support/resistance

Here is an updated chart of the 130-min/30-min showing the 3d setup on the 130min (2c-2d on the daily) which tagged the 100% projection this morning

Here is a 15-minute chart of the SPY with the Advance/Decline on the left and Up/Down Volume on the right.  Worth noting how the up volume was well into the upward move yesterday, while today showed muted readings, hinting at distribution.

The weekly and daily charts;   I THINK the daily is a bullish thrusting pattern, but confirmation is always warranted.  But I'm not particularly crazy about the weekly fast line crossing the slow line.

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