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.

Wednesday, January 16, 2013

Wed. 1_16

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

I'll admit, it has been a very choppy and frustrating week for me.  Through the past I have learned the hard way (read, by losing money) to be very cautious trading during the week of Options Expiration.  One or two  days out of that week can present some good opportunities while one or two days, or even three, during that week can be very choppy (doji days).  So, during these weeks I scale down and try not to get caught up over-trading.

You still have to squint to see the 3/10-macd on the hourly chart, not something that indicates volatility (or much opportunity for that matter). 
The up-arrows in the 15-min chart below were long considerations (based on anticipating the higher time frame 65-min chart having the fast line correct into the slow line and continuing with previous momentum, (1b-1a or 2b-1a criteria), all of which produced a very poor Risk:Reward.  
Two entries may have resulted in a stop-out, if not a partial-out scenario (greatest MAE's being the second up-arrow at $0.40, and the the first up-arrow at $0.34).  In this particular time-frame layout with the SPY my stop-consideration range is between $0.30-$0.50 (maybe $0.60 depending upon volatility).
So, the chop remains

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