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Yes, classical. After THAT move anything the stochastics fives you is total bullshit. Go some bars back it was NAILED to the top - totally overstretched. Basically I demand the stochastics to get back into reasonable area BEFORE (!) looking at it again. A drop under 80 does not mean "sell" here, it means "I am actually starting to measure something again".
THere is also this ruls of not trying to catch the extreme top of a strong trend day, and I am not sure what else than a strong trend day you would like this to be.
One filter that I very nicely use is EMA 5. Even with price action. Only enter when that has turned. You also want some non trivial price action confirmation after strong trents. Look at your short - it was pretty much still visually a strong uptrend, just a - ah - slowing one. Were you waiting for an inverse cup to form?
Basically this really was "ok, the stochastics got totally overstretched in a strong movement due to being unable to go over 100". And you were so nice to go in directly when basically there was no down movement but the push was fading out and the indicator started to show ANY value again
Yes, but like I wrote, I donīt pay attention only to Stochastics. As one can see, at the time I sold, we have stochastics overlsold, MACDHist near 0, MACD lines crossing, has the MACD Hist bars before created also a divergency with the price rising... The only thing wrong was the slope of the moving averages...
Noooo ... the problem is ; You are treating the MACD and Stochastics as a mechanical trade system. They both crossed and you sold. Price was still above the "Fast" Moving average and the "fast" moving average was still above the "slow" moving average.
Indicators are not an absolute command. You have to take what you see in context with what they tell you.