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My 6E trading strategy

  #777 (permalink)

San Antonio, TX
Trading Experience: Intermediate
Platform: SierraCharts
Favorite Futures: ES, 6E
Posts: 123 since May 2011
Thanks: 15 given, 98 received

trendisyourfriend View Post
I got the same interpretation too. That is not mentionned in the PDF. In fact, it contradicts what is in the PDF since for a trade to take place you need a HH or LL in both charts (1508,377). Obviously, if this is what happens then the stochastic will also mimic price. SO is this a trade setup or do we need also some kind of divergence all of the time ? This is not clear to me and i suppose it is not for others too. The more we see what Charles is doing, the more we find rules and exceptions.

It's not in the rules, that's why I posted it as something new I learned .

At the beginning, I was a little obnoxious because I kept questioning Charles about the rules. Eventually, I've come to the conclusion that those rules serve as general guidelines, but there are some exceptions to the rules that have appeared as the thread has grown. I've taken mental notes about some of them, (maybe I should write them down) and have also concluded that this is not a strictly mechanical system. It has some discretionary aspects to it, which is perfectly fine.

As for the divergence when looking for an entry, it seems as though in the videos, the divergence requirement kept him out of what would have been some losing trades. I guess the divergence setting up before the entry gives price that extra momentum needed to move in the direction of the trade once a trade has been taken, which like I said before, is what I like about this system. So if the divergence is going to give it that extra momentum, then I will include it as a requirement for a proper setup when implementing this strategy. I will keep studying the strategy until I feel comfortable enough to use it in my live trading.

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