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 toddstrade@gmail.com
I am always open to questions, comments, or suggestions on how to improve this blog.


Saturday, June 7, 2014

weekly

A few primary targets hit on the weekly time frames.
SPY - hit on Friday.  Expecting the higher time frame (upper indicator) to see a FL/SL cross on next week's close.  As mentioned many times before; just because the FL < SL on the traded time frame (upper most macd) doesn't mean price can't go higher, and when the FL finally does cross the slow line it can be too late in the move (which is why you use the faster time frame (lower 3/10macd) to time an anticipated trade in the direction of that higher, traded, time frame.

DIA - depending upon discretion you could have either stayed in this triggered trade or gotten out because of the 3/10macd fast line ticking lower.  Also, depending upon discretion, you could have entertained the idea of entering long on the close of this week with the fast line ticking up, but it's not really a setup I like to chase.

QQQ - reached it's primary target on very strong momentum.

IWM - actually triggered on the close Friday for a primary target back to the all-time highs

XLF - nearing a primary target, all while the higher time frame has a FL < SL and seemingly waning momentum

IYT - been leading with shorter-term consolidations prior to breakouts

ES - like the SPY reached a primary target on Friday

6 comments:

Jim said...

Todd,

Sorry for asking this - I am sure you have answered before but I can't find it - on the SPY weekly - the lower MACD is 3/10 - what is the setting/timeframe on the upper MACD??

Jim

todd Sohayda said...

Jim,
The lower indicator is the 3/10macd of this time frame (weekly). The upper indicator is meant to reflect the 3/10macd of the higher (traded) time frame. So in this case, the upper indicator is the 3/10macd of the 3-week time frame (three times higher than this weely trigger chart.
Basically it's a macd (using Simple Moving Averages) with the settings 9, 30, 48 but it's just as representative if you use 6, 27, 45.
This way you can have the 3/10macd and the trigger price chart with the higher time frame 3/10macd. Does that make sense?

Jim said...

Todd,

Thanks - that helps get the concept. I am using Stockcharts which uses EMA in the calculation which has some affect - I was able to get pretty close to your chart with settings of 18,60,96.

Appreciate your work and the time it takes to put this blog together.

Jim

todd Sohayda said...

Thanks Jim. Have you read this post? -> http://www.toddstrade.com/2014/05/free-charts.html

It's a way of replicating this layout using a free stock chart provider.

todd Sohayda said...

18, 60, 98? That seems like a much greater time frame (the difference between an 18- & 60-period EMA and a 98EMA of that 18-/60- differential?

Jim said...

Todd,

Thanks for link to Free-charts post - I tried that - very nice.