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.


Monday, November 26, 2012

Mon 11_26

Today's trade:

A key for the above chart to define the horizontal lines and dots.  For further explanation, see this link:  

The 15-minute set up in the following ways:
 - 2c - 4d - 3a - 3b - 3a - 1a

So, for half of the day the 3/10macd was oriented in a bearish reading as price tested lower (and within the two moving averages).  In the early afternoon the 3/10macd had a neutral-bullish orientation as price reverted back to a mean (20-period MA) and based at resistance.  In the later afternoon the macd pulled back into a positive sloping slow line and traded higher in the form of an ABC wave (also inverted H&S),.

A closer look at the 5-min
First trade short; kinda late, quick profits taken.
Second trade long; Only really anticipating a return to vwap
Third trade, long;  late etry and basically a b/e trade (minus comm.)
Fourth trade, long; very choppy around IB_high.  Second exit was a sucker move (me being the sucker for getting out flat on the second half).
Fifth trade, long, after realizing the Descending broadening pattern I took a smaller position with a target of roughly the measured move, which coincided with Fib. projections and near the previous day's close.  Another reason I need to switch over to the E-mini instead of the SPY.

Higher time frame not much has changed.  Price is back within the previous breakdown point (previous support), with an untested gap overhead.  Further price advance should be met with increasingly more assertive shorts.  Looking for a read on momentum with the faster time frame (65-min on right).  A push higher (pushing into $142) and forming 2b criteria on the 3/10macd would be a decent shorting set up to watch for (similar to a 3-push pattern).

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