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.

Saturday, November 17, 2012

Fri. 11_16

A doozy of an Options Expiration day.
In the chart below:
The first long trade, based on the 3d criteria was fine (took a loss), it should have broken out and I held onto it longer than I should have.
The first short I actually entered in the bar prior to the triggered bar.  For some reason I left out my exit arrows, which were basically around the previous day's low (green dotted horizontal).
Long entry around 9:30 for a small loss.
I didn't take the two short trades that have an "x" between them (on the 5m 3/10macd) around the 10am hour.  In hindsight, I was fine not taking the first one, but should have taken the second.  There's a nuance with the 3/10macd fast line that I have a hard time explaining, but this instance reflects that nuance.
The next long I bought the close of that strong bar and added on a retrace just above vwap.
I tried another long around 11:30 for a small loss.  I didn't think it would break higher, but felt I had to have something on in case it did.
The last long of the day I entered prior to the trigger bar (undisciplined?) right around vwap (135.67 I believe).  Perhaps foolishly, I did wait for the last 2-minutes of the day to close out the remainder of the trade, so I was able to get out at .49 (previous day's high).
I do like how the resistance pivot broke out AND held a re-test, looks promising.

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

In the Daily chart below we came within a few ticks of the 100% projection of the prior seed wave

Interesting how the weekly is holding the 50SMA, also the pattern of higher highs and higher lows (on the weekly chart) continues to hold true.  If I were to be looking for the 2c-2d criteria trade on the weekly, I would still be waiting for the daily to set up a strong 3a push or the 3d criteria, which would take at least a week, probably closer to two weeks.

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