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, February 20, 2013

Wed. 02_20

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

Left a lot on the table today :/
Price held a 50% retrace (Fri. lows to yesterday's high) up until FOMC minutes came out.  Very weak attempt to rally which seems unusual for the post-FOMC fade move (just a validation of the strong selling on the tape).  

 There wasn't much to go on in terms of 3/10macd.  Price was stretched obviously (all year basically) and we just kept cycling higher.  The higher time frame became cautious with a fast line/slow line cross (vertical dash line and shaded rectangle).  This coincided with the completion of a small XYZ corrective wave on the faster time frame.  At this point it was a matter of, do we just bounce and continue higher (as we have all year) or do we have a steeper correction?  The faster time frame ended up forming a larger XYZ corrective wave.
During the FOMC minutes time frame the 15-min 3/10macd was showing potential 3d criteria setup.  When the 3d fails it has potential for a rollover move such as this one, which ends up turning the 3/10macd citeria from 3d into 4c continuation.

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