My 6E trading strategy | Currency Futures


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My 6E trading strategy

  #1163 (permalink)

aurora,il
 
 
Posts: 319 since Aug 2009
Thanks: 134 given, 1,405 received


yeohass View Post
Hi Charles,

This is my first post ever - and I'd like to say thanks foremost for the information you have provided here. For a new trader such as myself, this is like gold dust!

I have a few questions I'd like to ask. Just to note, I have read the entire thread - it took me 2 weeks to take it all in properly. This was at the beginning of August and I am still just looking at historical data trying to master the system.

1. When looking for stochastic divergences, hidden or standard, do you compare neighbouring peaks/troughs only, or can you compare the first and third peak for example?

2. Still on stoch divergences, I am a little confused on when I'm looking for W's and when I should be looking for M's. Should I be looking for both at all times or is it W's in down trends, M's in uptrends? Or something else?

3. (This question is unfortunately very much related to my newness...) With rollover last week, should I be looking at 12-11 data now, or is the momentum still with 09-11?
Thanks again
K

Hi,

1. You are comparing where the Stochastic was on the previous hook in the Zig Zag indicator to where it is currently. If you are in a downtrend and price is making a lower high but the stochastic is higher than it was at the previous zigzag hook then you have a hidden divergence
2. Per the basic rules we only trade "W's" in an uptrend and "M's" in a downtrend. the basic method does not take counter trend trades
3. I am curious what is going on also, I am still trading the 9-11 contract but also watching the volume on the 12-11. I will not personally switch contracts until the volume switches

Good trading

Charles