Taking off from the previous post; the long entry never materialized and price broke down further. A lesson in not being married to a bias. The long setup was taking place, the trigger never materialized and price rolled over and traded in the other direction, which could have been just as profitable.
The fast line was trying to hold the slow line (read: momentum as price tested marginally lower, 3d criteria setup). The price pattern showing a descending channel. The further, steeper down tick in the 3/10macd fast line (daily chart) coincided with the breakdown bar through the descending channel.
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 email@example.com
I am always open to questions, comments, or suggestions on how to improve this blog.