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.


Monday, March 23, 2009

G C E

Gap
Consolidate
Expand
A large gap up to the previous session's open (above R1 and PP), price consolidated for the first 30-min before expanding, leading price higher all day with a number of periods of tight consolidation.
Here on this SPY 5-min chart I have marked the "First Cross" entries. One long entry from the previous session (15-min. before the close). The short entry (marked by a red vertical line) wasn't taken because of the confluence of support for price (R2, vwap, AND a 50-ema).
The green vertical line was a long entry that resulted in a rally into the end of the day up to R3.Here's a 15-min chart, again with the same "First Cross" entries marked in corresponding vertical lines.Longer term (60-min) we see the gap filled from Feb.17th.
The S&P500 broke out of the down-trendline, next target would be the next, longer-term, trendline.

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