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, January 18, 2013

Fri. 01_18

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

Blue arrows are entries, black are exits.  "X" indicative of a trade considered but not taken.

Higher time frame showing 2c-2d

Finally, the weekly.  Points worth considering:
-Corrections have become shallower since 2012.  
- Breakouts from previous highs have seen diminishing returns
- As old highs (or in this case, all-time highs) are approached it is common for positions to be thinned.  Pros don't want to buy at the highs or as price breaks out, they would prefer to buy a re-test of the breakout point.

I still believe this is an important divergence to keep in mind.  The QQQ weekly head and shoulders.  Invalidated above $67.50-$68 and the neckline coming in around $62.  If this were to break down, a measured move would be around $53 (which would still maintain the higher low structure).

No comments: