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, October 12, 2012

Fri. 10_12

Keeps trying to bounce, but keeps getting sold, hmmm
For the first half hour there was a battle to retain the previous day's low and recover the overnight low.  Once breaking above the overnight low (and o/s_high) price made a bee line to the overnight highs (missing by a dime).  With lack of follow-through price returned to its comfort zone (overnight low, previous day's low, and o/s_high confluence).  The resulting head and shoulders pattern then fulfilled its measured move.

Advance/Decline showing the congestion at the zero-line before breaking down.

15m & 5m with 3/10macd.  The opening sequence was a 3d criteria setup.  The strong 15-min bar closed just above the resistance level to watch.  I did enter long (small) at the 9am trigger bar, but the trade was a scratch.  I almost scratched my short entry (patience).  Also, there was a short entry that I considered taking at around 12:30 but passed on it.  Was expecting a stronger bounce into the close, but it turned out pretty muted.

Daily & 130m chart; price trying to hold the 50-day MA and the breakout point from September 6th.  Slight buy divergence still present in the daily, but the faster time frame can still work lower (extending the fast line on the daily).

SPY weekly coming into the previous resistance breakout zone.  Weakest weekly bar since June

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