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.

Tuesday, November 6, 2012

Tue. 11_6

Follow-through day.
Digestion for the first two hours leading to a breakout ending in a 50% retracement.
Third down-arrow in the chart below representing a trade exit, was about one quarter of the position.
Criteria 1b leading to (anticipating) 1a

The market has set up perfectly for a major news event (being that it is elections).  The bulls can argue a "W" pattern and the bears can argue the "B" point of an ABC corrective wave.  Bears can also argue for the 20- & 50-Day Moving Average crossover.  Can easily go either way.

Today's trade with key areas:
Confluence of prices; between the Open print, previous day's high, overnight high all within 2.5-points

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

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