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.


Wednesday, July 8, 2009

divergences

Today's market theme is divergence.
I mentioned yesterday my desire to watch the previous day's last hour lows ($88.) for a move. We got that break-down after meeting resistance at the pivot point level on a small gap-up. The bottoming process for the day was built on two bullish divergences, the first between 11:30 & 12:30 and the wider being between 12:30 & 2:30. Price ended up right back at that $88. level (previous trend day's last hour low).The 60-min chart put in a bullish divergence after weakening downside pressure today.Provided our momentum indicator ticks up tomorrow, we have another (slight) buy divergence happening.The market profile shows value being established at these lower levels and possible upside resistance back at the gap from last Thursday.

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