Cloud Chart Secrets Setups:
The Best and Most profitable set up is when the Lagging Line crosses
the cloud. You can use this for both an Entry and an Exit.
Make sure you wait for 3 bars to close above the cloud after the lagging
line crosses.
Once the Lagging line crosses the cloud it’s best to look for shorts. Use
the Par-Sar to re short.
This next set up is my favorite and the one that I use the most. It need a
shorter and better name for now I just call it lagging cross D6010.
This means that I let the lagging line cross the daily then I drill down on
the daily and the 60 min chart. Then use either the 60 min chart or the
10 min chart for the entry. The 3 entry methods use is just the cross of
the cloud by the lagging line. The Price touching the Cloud and support
or resistance Or the Par-SAR buys or sells signal.
Daily Chart notice the cross at 3.
60 min Chart notice the cross at 3.
10 min Chart notice the cross at 3.
1. On the 10 min chart you can see the cross and entry point.
2. If you missed the first on just wait for price to touch the cloud
Price Touching the Cloud
1. Price goes to or inside the cloud
2. Use the Par SAR as stop or the bottom of the cloud
Price and Lagging line touching cloud:
1. Price is touching or in the cloud
2. Lagging line is touching the cloud
3. Good buy signal for PAR –SAR
This last one is a Lagging line Hook and it can be dangerous so be on the
lookout for it.
Lagging Line Hook:
1. Price is below the Cloud
2. Notice that the Lagging line is hooking this means that the price
should bounce and could reverse
1. Price below the Cloud
2. Lagging line hooking but cloud is acting like resistance.
No numbers on this chart I’m short PEG from above $36.
Where should we place our stop now? We know it’s going to bounce
but the cloud should act like resistance. So a stop above 34.50 make a
lot of sense.