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, October 5, 2010

breakout

Price has trended up to this resistance level over the course of nearly 6 weeks.
 In that time there has only been one correction that returned 100% or more of it's initial impulse momentum move, like so:

 Taking that largest correction range we can add it to future momentum moves to determine valid breakouts, like so: (note, decisions based on a daily candle require the close of the daily candle.  Therefore, the breakout on 9/30 was determined to be false; leading shorts into positions.  We were then able to move the largest momentum box up to 9/30's high and wait for the low of that box range to be broken.  Of course it stopped dead on the lower boundary , but shorts were still in positions.  Said shorts were squeezed today). 

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