A key for the above chart to define the horizontal lines and dots. For further explanation, see this link:
Stepped away in the late morning, so I didn't trade after the short position in the morning. Long "triggers" were late, so using that process that I emphasize throughout this blog would have been challenging. Trading the squeeze was all about reading the price behavior today.
Higher time frame;
Anticipating the daily 3/10 macd fast line ticking up we would be looking for the faster time frame (65min) 3/10 macd fast line to pull into the slow line and tick up. Otherwise, the reverse could set up a steeper correction short opportunity.
The QQQ higher time frame has set up a little cleaner in regards to the recent "pullback"
The initial entry would have been the close on Monday. Tuesday formed a tight flag and this morning reached the 50% projection.
The second down arrow on the 3/10 macd indicates the 4d-4c criteria short setup (often seen as a bear flag), to "anticipate" this we could have factored in another (faster) time frame to be paired with the 65min, like in the chart below:
As an aside, it's worth watching this ascending triangle on the XLF