Put DDD on your Radar

This is another perfect example of a probable short set-up that was on my watchlist with an alert once it crossed the Rubicon, that level I showed you in NFLX or DE last night, my alert just went off and the process I summarized in the DE post last night and is detailed in the two posts I encourage you to read, can be seen right now playing out in real time in DDD. It's not there in my opinion yet, but it's certainly in the process.

 This is the daily chart of DDD, the trendline that is drawn there has been there for well over a week, it's a clear resistance zone and a move above it is where I set my alerts, this for me was the purpose and the function of a move higher, I found a video from 10/6 using GOOG as an example as to what we were looking for both in GOOG, but using GOOG as a proxy for the market, when you see how timely the video/expectations were, I think this entire process makes more sense and GOOG itself is on the list, I'll post that next unless something more important comes up.

This 10 min chart shows volume surge on the break of the trendline, a breakout move, then as price falls below the same trendline volume is up again as that's where most traders will set their stop, broken resistance is suppose to become support, so those were hit and you see what happens as DDD moves back above the trendline again this morning.

As this move is occurring 3C 1 min is in line until we get to the breakout, where the volume is because the volume or demand is what institutional money needs, someone has to take the other side of the trade, but few traders ever think about who that might be or why.

The 2 min chart shows a clear divergence as DDD approaches and moves through the trend line.

And the 3 min chart showing the same, this is migration as the divergence starts on the fastest timeframe, if it is strong enough it moves to the longer timeframes.

We have the Oct. 9th low with a 15 min positive divegrence, this is to help get it above the trendline, but this is market wide as the same day we had only our second VIX signal of the year on my custom buy/sell indicator, it was a VIX sell on Oct. 9th, the VIX moves opposite the market so it was perfect timing.

As far as DDD moving forward, usually 1-day in the target zone is not enough, especially for larger stocks, but more than that, this 15 min chart and longer ones need to see heavier distribution, that's the confirmation we need, I have little doubt we will get it, but it's early still so it takes time to move a large position.

Just keep this one on the list.

I'll have that GOOG video up shortly.