What needs to be explained about how I see trades is that I use the 3/10 macd as my seeing eye dog, which just helps me to pick up on the stability and direction of the short-term trend I'm attempting to trade. Essentially it's just a tool that helps me to pick out mostly lower highs to enter short or higher lows to go long. Something else that has helped me was to categorize where price is in the short-term trend by determining the 3/10macd criteria that is present at that time. I wrote a blog post that introduces the concept here and laid out a spreadsheet regarding it here.
The concept is simple; price follows a path of least resistance, and as such will often continue in the direction of the established trend (regardless of time frame). So, you just need some context and a way to define trend for your objectives. I use the 3/10 macd as a way to anticipate what price may do based on the pre-determined "trend". So what I see on the 15-min 3/10 macd is a criteria (from the above linked spreadsheet) which matches a good probability setup.
Monday morning CSX short based on the 2c criteria and looking for a shortable pullback on the 5-min.
Later that day a long entry was taken based on the 3d criteria (highlighted on the 15-min chart in a rectangle):
Here was another 3d entry in ADM where the target was simply the PDL. I have found that 3d setups typically occur as a short-covering phenomenon later in the afternoon which can run into the following morning, but it is critical to know where realistic resistance is and whether price is increasing to test resistance or if it has broken out of it (leading to more short-covering).
A 3a setup often provides good long entry opportunity, buy pullbacks on the 5-min:
A 1a setup can also provide good long entry opportunity. Looking to buy a pullback with help from the 5-min 3/10 macd to anticipate that pullback:
Another 1a:
This one had great opportunity but lousy execution and I missed the re-entry :(
2c short in the SPY
4d short, was simply entering in a pullback of previous momentum
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.
2 comments:
You should post how many shares you got in each trade and your stoploss, profit/loss. Maybe that will get some bastards interested! Drama is needed for blog survival.
Why would I want to add drama? Besides, plenty of blogs out there don't do that (Wall St. Warrior, Afraid to Trade, etc.)and attract plenty of readers. I really, honestly don't care if not a single person reads this blog though.
Post a Comment