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.

Thursday, November 7, 2013


A method I employ to allow momentum time to digest is by trading on the "right side" of the 3/10macd fast and slow lines.  "Right side" meaning, if I'm looking for a long entry I prefer to have the fast line greater than the slow line, or at least close enough to where I can anticipate this to happen.
In this Daily chart below of the SPY the fast line went under the slow line (most recently) on Oct. 30th, so before entertaining a long entry I prefer to wait until the fast line and slow line catch up to one another again.  This isn't to say that price can not go higher, it's just a way of allowing previous momentum time to digest.
Other examples are highlighted in the chart below coinciding with potential long entries.  There was a faded breakout in June, but it is a good reminder that nothing is ever perfect in this game.

No comments: