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, April 13, 2011

tough action

 First trade was in GS and I felt it was a decent enough trade as my target was only $0.50 and the concept of momentum, pullback, continuation was legitimate enough.  The 5-min chart on the right indicates the entry and my target for half the position was vwap (not on the chart).  So, on getting my half position filled, I exited a bit below my original entry on the other half on the basis that the Open price was rejected and the sector itself was weak.

I was watching ANR and MEE as 3d-criteria setups going into the day (triggered at the close yesterday), so I was looking to buy a pullback, but instead I should have been looking to short a pullback after previous resistance was unable to hold support.  Not sure why I didn't reverse to go short on this failed long trade, as I find that if the 3d setup doesn't follow-through it's not uncommon for it to roll over and go lower (when the Fast Line & Slow Line cross on the 15-min chart).

Here was a better 3d setup that I wish I would have seen.  Much cleaner and easier to define targets as well as see price fail resistance and roll-over:

Finally, FCX was a good trade, good setup, but my position size was small.  To reiterate, the criteria I ascribe to the 3/10 macd is only a method for me to define a stage that price is in.  "4c" is a good probability bear flag, the 3/10 macd just helps to put a filter on noisy price behavior.
I made an error in labeling this chart; where it says "out" with the up arrow on the 5-min chart was for half the position, the second half was exited when price returned to the 50% extension at $52.36.

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