Looking at your last picture, it seems to me that the M15 Sto is not heading south and that we shouldn't have taken this trade.
Am I wrong somewhere ?
Stoch 15 was up, like you said.
Stoch 5 was starting to hook up (unless he put the trade on just before it did)
Price was at the bottom his drawn channel
50ma was turning up (still tradable, but I would have wanted more confirmation than just price crossing it, maybe even a closed candle)
High impact news was pending in a few minutes
Although he did have his resistance hit, which was a reasonable resistance, but was a 5m resistance. I'd have looked to a higher TF for resistance, and if you see after the news, it hit a very strong resistance price around 1.2740 on m15, m30, and even h1, which it bounced right off of.
BUT... if you look back at it now, it would have been a valid trade if it hadn't been for the news. News shot price up quick, but has since corrected and although the trade wouldn't have been huge, it would have profited.
I think he saw divergence, price hit ma50, stoch 5m down, and a 3 semafor (which I don't trust the last semafor at all), and hit sell. Valid entry per his rules (sans the stoch 15 which I find you can fudge on some cause it chases 5m price). Just the news announcement is what killed the trade.
I say it again, technical only traders should be aware of news announcements. Especially scalpers and small SL traders.
But hey .. maybe he thought the news would go in his favor..... that is likely..
but thanx for idea width stoch it works great !
Not so many but I could not make such a mistake
