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, November 23, 2012

Fri. 11_23

Shortened trading hours.
Strong advancing day.
Price closed right around the 50% Fibonacci retracement, as measured from the September highs to recent November lows.  In five sessions we have retraced 50% of what was the result of 44-days of selling.  This also happens to coincide with a previous breakout point, as per yesterday's post.  I'm looking foward to seeing how the pullback plays out, as it looks like we could get a 3d setup on the daily chart.

When the traded time frame is showing the 1a criteria and the trigger chart has a similar criteria, I'm not waiting for a tick up in the fast line on the trigger chart.  Rather, I'm looking for a simple breakout trade.
So, in the chart below the 5-min trigger chart has a fast line that is decreasing while price is increasing.  By the time the fast line ticks up price is already extended.  The secondary entry comes when the 5-min  3/10macd resets in a bullish orientation (fast line greater than slow line).

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