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, January 31, 2012

o/n ES

ES potential:
- Higher time frame showing an inverse head & shoulders pattern
- Faster time frame showing a bear flag
The faster time frame bear flag could still partially break down (as it appears to be doing now) and have the inverse H&S remain intact.  Essentially, bullish above 1313.75 and bearish under 1300.  The 240-min could be setting up the 3d criteria,  It would be best for the 240-minute to hold/regain it's 50% Fib. retracement.


With that said, the 2c-2d criteria is showing on the daily.  As mentioned before, the 2c-2d criteria on a higher time frame shows as a 3d (3-pushes to a low, inverse H&S, or double bottom) on a faster time frame (which is what the 240-minute is showing).  Also, the next move higher should either set up a lower high short setup or a breakout to higher prices.  Whichever direction it goes, the momentum should be the clue to our measured move.


No comments: