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.


Wednesday, November 21, 2012

Wed. 11_21

Should have known better than to trade too much today.  Instead I got chopped up a bit.  On average about 2.25-points (ES equivalent) loss.  Not that big deal, just disappointing to have fallen for the chop environment.
Blue arrows are entries, Black arrows are exits.
7 total trades; that right there should have stopped me as I should only really expect 3-4 trades a day out of the SPY.
The first trade was just dumb.  The second could have been managed better, likewise the third.
The fourth was a scratch.  The fifth was decent.  The sixth wasn't SO bad, I think my average loss was around a quarter of a point.  The seventh trade was also for about a quarter point loss which was frustrating after being up over 1.5 points and then breakeven at the blink of an eye.
Essentially, the first two trades of the day were my biggest losers, while three other trades were small losses which added up.  Equally frustrating is knowing in hindsight that had I held on to a lot of the trades for break-even, most would have had a MAE of only 1.5 points.

Volume today was a cue to fade and scalp quickly

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

$139.50 held resistance today

Starting to see that stark reverse divergence on the daily time frame, with waning momentum on the faster time frame.  It would seem that further advances may come under heavier selling pressure.  Further selling would beget dip-buyers looking for a higher low or buy divergence, but that would be about 1-2 weeks out.

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