I've been stalking AAPL on the long side for the most of the week. While I've been stalking AAPL this week, I noticed how "easy" the short side has been. "Easy" in the sense that resistance levels were sold without much re-testing, resistance levels held and prices went lower. However, I was looking for long entries. My premise being that the higher time frame was setting up a 3-push 3d crtieria setup, as seen in the chart below.
So, in the charts above; The 65m chart (left) I was looking at the 3-push price pattern with the 3d criteria. On the right is the past 3, 15m intraday sessions, with entry points I was watching (though one of which is not indicated, the 3rd up arrow on the 15m 3/10macd isn't indicated on the price chart; user error). The 2 down arrows were potential short entries based on the 65m 3/10macd "failing" the 3d criteria setup (essentially price rolling over and not squeezing higher the way I was anticipating).
I've written throughout this blog about the 3d criteria setup. I'm looking for a 3-push price pattern or something similar to an inverse Head & Shoulders. The faster time frame entry is an "a" criteria (3a or 1a) on the 3/10macd.
I've also mentioned that if this setup "fails" there may exist opportunity to turn around and short the market. This is where I "failed" by not taking the short side of this trade, even though I was witnessing signs of selling in the tape all week.
The chart below is the 15m/5m from Thursday where I was looking to buy into this higher time frame setup. I took the first up-arrow entry on the 5m (other 2 were equally likely entries). I exited with a gain.
The chart below is the 15m/5m from today where I was looking to buy into this, still valid, higher time frame setup.
I entered long and exited with a small loss. And then I failed. I failed to take advantage of the short opportunities that presented themselves as well as failing to take advantage of the heavy selling I witnessed all week on the tape. It is what it is.
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.
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