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Originally Posted by Caprica
Have you back tested your cle stick strategies?
Personally I found that cle sticks not to stack up very well in back testing modifying the system to wait for confirmations makes the expectancy of the system even worse.
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"Confirmations" is used in the context of smaller time frames. For instance if you believe you have a setup on say the 2hr 30min charts you probably want to seek confirmation on a smaller timeframe such as 5min or 1min depending on the strength of the move. The close of the smaller timeframe cle should provide clues on whether the market is about to move in the direction of the setup (eg. a longish cle with shorter wick longer body) or that it might just be a false break (cle with a longer wick shorter body).
In other words your alerts may fire off if price hits your target. But you would want to wait until the close of the small-timeframe cle before you make your decision to enter the trade providing all your other indicators stack up. Eg. if your alert goes off at say 8:31am it probably is wise to wait until 8:35am (on the close of the 5min cle) to see whether you really have somthing going on here. Then again if 8:30am was the news release for monthly US Payrolls (as per last Friday) viewing the formation on the 5min chart at 8:35am may be too long to wait if the news causes a major reaction. In this instance you would be better off referring the 1min chart at 8:31am to give you a better view on how the market is unfolding.