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, August 31, 2011

Common setup

Two setups on the SPY today.  First was a long off the IB-low coinciding near the Open price on a reverse divergence.  Since the 'trend' is still up (for my timeframe) buying common support levels (trend line support, IB-low, Open price, previous day's high, 20-period MA were all there) was still a highly probable trade. 
The short entry was based on the 2b criteria setting up on the 15-min 3/10macd and the trigger was the 5-min setting up the 2d-to-2c continuation pattern (a.k.a. Bear flag).  Exit was at the 100% projection.  I took everything off at the one target out of an error in judgment. 


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