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.


Showing posts with label simple patterns. Show all posts
Showing posts with label simple patterns. Show all posts

Friday, October 30, 2009

pre-Halloween bloodbath

Taking a zoom-in approach to this Friday's SPY auction:
Starting with the 2-min chart with modified NYSE TICK histogram. Selling the Positive TICKS today worked spot on.Keeping it very simple; continued downside was evident after price closed under the 50% retracement (previous day low to high) and later the 50MA. We closed 1% lower than the previous lows.What's ahead? We closed the month with a higher high and, so far, a higher low. To the downside there are conceivably 3 levels of potential support.
After that, there's a lot of empty (untested) space below. A LOT!