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.


Friday, February 15, 2013

failed

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.

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