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My 6E trading strategy

  #821 (permalink)

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

I just finished watching today's video and have one question. I believe this was addressed before, but just need some clarification. In the video, Charles looks at a trade setup at around 6:17 CT which was not taken as by the time price closed below the cloud, the Stochastics was in the oversold area.

So lets pretend the cloud was not that low, but higher. So price closed below the cloud and lets also pretend that the Stochastics was above 50 at that time. Would it have been a valid setup?

What I am trying to get to is that, in the 377 chart, price was making HH and HL until it formed a double top with a stochastics divergence. It seemed as though at that point in time, a valid setup was forming, regardless of the HH and HL in the chart. This would mean that as long as the 377 tick chart forms a double top with divergence, it doesn't matter if it formed a HH and HL while retracing to the 13 EMA. Would this be a valid setup?

EDIT: It was my understanding that this was a valid setup due to the stochastics divergence and as long as the 1508 tick chart was still set up properly.

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