Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I am posting these examples so I can learn and recognize them. Obviously these are sell patterns, and the reverse would be buy. I like to take a position in the flooded background. You can anticipate the flooding as the price bar pushes against a greater sloping Bollinger band. I like to stop myself into the market by placing a STP or STPLMT order just beyond the completed price bar. Currently, I am waiting for the first colored bar in like color flooded background. Then I put my (safety) stop on the opposite end of the price bar and work down the bars. Price always returns to the ZLEMA and price bars always go white (neutral). That's just how I am "doing it" currently as there are a dozen ways to trade these charts.
If the Double Stochastics is cyclical and the 8 min DS is one cycle, than the 2 min DS is a quarter cycle. A bull cycle will skew right and a bear cycle will skew left. In a strong move, the quarter cycle can disappear. If this theory is valid, then I hope I interpreted it correctly. So the pattern that I am really looking for is when both DSs leave the OB/OS zones together as a completed half (or whole) cycle.
#1 maybe this is the completed half (whole) cycle. the 2 min was early and by the time the background flooded, the 2 min was on the lower half of the DS panel.
#2 the DSs are opposite and the price is sideways.
#3 (the open) the 2 min peaks and reverses and chases the 8 min to the bottom.
Just to post and maybe learn something. Today, I flipped back to SPY; hot for a trade off these charts. I was looking for both DSs to come from the zones (OB/OS) together to get into a trade. Didn't happen.
Okay yesterday I was looking for both to come from the zones together. It pretty much happened pre-RTH, just before the RTN open. So there it was and I don't like to trade the exact open. So I didn't. Maybe I need to adjust my view of DS patterns since there were other good trades. (risk - reward) in retrospect.