Extreme advancing days you really need to be in before the first hour. The 5min 3/10 macd will be practically useless as well (if you want a good price), so you have to either buy some form of support (vwap, pdh, o/s, etc) and/or go to an even faster time frame for entry cues.
The problem is knowing when you are in an extreme advancing environment before the first hour has traded.
Opening with a 1a criteria (or 4c in the case of an extreme declining day) is my first clue. The extent of the gap involved (there is most often an impulsive gap) and behavior in premarket. Finally, some breadth readings to help you feel like the wind is in your sails.
Breadth started strong (TICK opened +1000)
Opening hour- pullback to the Open and vwap coinciding with the pre-market high $157
Lucky exit before the tweet-crash
Volume profile coming into the day, we settled right back into price familiarity
ES_globex. Very interesting that the tweet-crash bounced at the overnight range midpoint, on the dot
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 firstname.lastname@example.org
I am always open to questions, comments, or suggestions on how to improve this blog.