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.


Thursday, September 27, 2012

30min

A 30-minute chart of the SPY with a 20- 50- & 117- period Simple Moving Average.  I know, I know, you're thinking; "A 117-SMA is just stupid."  However, I use it on a 30-minute chart to closely approximate where the 10-day Moving Average is located.  Likewise, the 50-SMA closely approximates (technically 52) where the 5-DAY Simple Moving Average is located.

What is illustrated above is the following:
"BD" means Break Down point.  In other words, Price breaks down from previous support pivot.
"T2R" stands for Tries to Recover.  In other words, Price tries to recover the Break Down pivot.
Also highlighted is the "3d" criteria on the 3/10macd.
As a reminder, the slow line crossing below (or above) the zero-line often precedes a 20-50 Moving Average crossover (which in the above 30-minute chart approximates the 1.5- & 5- Day Simple Moving Averages, the Green and Blue moving averages).
Also, the "3d" criteria can define areas of important support (later on being resistance).

Just for illustrative purposes, below is a daily (left) and 30-minute chart for comparing the 5- & 10-SMA on the daily with the 52- & 117- SMA on the 30-minute chart.

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