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, June 21, 2011

gap up trend day

Gap up above resistance trend day.  Recent downside (test of support) momentum has been non-existent.  In the chart below it's helpful to notice the cup with handle pattern the 3/10macd forms over the past couple days where we test support.  Especially when we make a lower low and form that inverse H & S price bar pattern.

After the first half-hour we had momentum bringing us just under a previous gap zone.  The break of this bar is a move into the gap-zone (filling longer-term short covering orders) where the next resistance level is the close of the pre-gap day:

While the opening momentum extended to the 200% projection (PDC to tOpen)

The most helpful the 3/10 macd can be on days such as these, I find, is on the faster time frame (higher time frame will just point to the obvious (trend day), where I'm just looking for bearish & bullish readings to give me a heads-up on the directional trade.
For instance, 2b &/or 2c short indications or 3a/1a or 1b to 1a long indications:

Oh yeah, and the SPY triggered a 3d long entry on the daily chart on Monday's close:

No comments: