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.


Tuesday, May 12, 2009

pennant trades

Took two trades so far this morning based on straightforward patterns. Both pennant setups, both of which I'm not longer in, and both of which are still running!
POT I've been watching due to the base it's been building over the past week. Here's the 30-minThe 5-min gapped up on the open and there was a nice consolidation that didn't give up any of the gap and a break of that base would have been the best entry, but I wasn't watching it at the time. However, it set up again in a pennant pattern where it broke out again (notice also there was a "First Cross" entry at the base break! the green dot plotted below the macd). I was out of the trade at the top extension out of the pennant. It was a really nice setup that later demonstrated the Resistance-becomes-Support before running further.It will be curious to see how it reacts at the top of this channel on the Daily
Next was MOS; it's been in a consolidating channel over the past few days while most recently coiling within a triangle, of which it broke out today.I missed the wide range impulse bar, but entered on the consolidation within the pennant (again, there were two nice "First Cross" entries, the green dots at the bottom of the macd).The daily chart looks interesting, I should have held a little piece of this one. As we've just seen how pennant breakouts can turn out.

No comments: