This is a trade condition I've discussed many times, it's a
trade type that's part of the SPY system and ES systems, it's easy
to understand, a 60 length Stochastic gets very close to 80% and
reverses down. Here's some trade examples and statistics of
the setup. The 60 Stochastic is close enough in range that it
could trigger today should the market stay in current range or
close down, not if we ramp hard to the upside say after the FOMC.
If the condition set's up on the SPY system and triggers a
trade I'll let you know. I'll let the ES system guys know as
well, though since both may occur same time I may just show ES here
as well
I've attached a series of images showing the current SPY and ES,
as well as past examples, on ES you can see the short setup that
occurred in Dec - Jan, that was a heck of a trade that ES members
caught. Unfortunately the setup didn't occur in SPY at the
same time. I show a couple past examples as well such as May
2012. This time at least the condition may occur on both
instruments at or near the same time.
at this very moment with the strong move up after the FED, the
60 stochastic condition is not being met, price needs to pullback
for that to trigger, there's a lot left in the trading day of
course, and it's possible that it could still trigger tomorrow if
it was a down down
60 Stochastic short setup condition may trigger on SPY and ES systems
Posted by matt on 16th of Mar 2016 at 10:58 am
This is a trade condition I've discussed many times, it's a trade type that's part of the SPY system and ES systems, it's easy to understand, a 60 length Stochastic gets very close to 80% and reverses down. Here's some trade examples and statistics of the setup. The 60 Stochastic is close enough in range that it could trigger today should the market stay in current range or close down, not if we ramp hard to the upside say after the FOMC. If the condition set's up on the SPY system and triggers a trade I'll let you know. I'll let the ES system guys know as well, though since both may occur same time I may just show ES here as well
I've attached a series of images showing the current SPY and ES, as well as past examples, on ES you can see the short setup that occurred in Dec - Jan, that was a heck of a trade that ES members caught. Unfortunately the setup didn't occur in SPY at the same time. I show a couple past examples as well such as May 2012. This time at least the condition may occur on both instruments at or near the same time.
Actually the 60 Stochastic trade
Posted by matt on 16th of Mar 2016 at 04:44 pm
Actually the 60 Stochastic trade is still possible:
on SPY, the 60 Stoch closed at 79.42%
on ES the 60 Stoch is at 79.98%
so if tomorrow the market was a slightly down, it could trigger
at this very moment with
Posted by matt on 16th of Mar 2016 at 02:34 pm
at this very moment with the strong move up after the FED, the 60 stochastic condition is not being met, price needs to pullback for that to trigger, there's a lot left in the trading day of course, and it's possible that it could still trigger tomorrow if it was a down down
ok let's say we get
Posted by cuqui69 on 16th of Mar 2016 at 01:38 pm
ok let's say we get the trade what is the exit Strategy?
matt hope you get better