Charles - I think I know the answer to this question but here goes:
I'm currently in a long trade which I entered based on my (still developing) following of your rules. The signal came at 11:44 EST on the 1508 and 11:47 EST on the 377. I got long at 1.4590 above the doji on the 377 and have been trailing my stop with the lows and supertrend blue line.
My question is about the 1.4600 level - I wonder if trading into this level affects your trading decisions. Normally I would tighten my stop and consider taking profits as price "plays" around this round number level. Please let me know whether this type of level would affect your trading decision and how.
thanks for your reply and this thread - I will write a more detailed thank you at some future point.
You have been wonderful stressing patience. Detecting chop helps in that regard. There is a great thread here in futures.io (formerly BMT)--"Detecting Chop". Some folks use ADX thresholds. Two indicators which I prefer are:
1. Chop TMFT courtesy of and with great thanks to ThatManFromTexas
2. anaKaufmanEfficiency courtesy of and with great thanks to Fat Tails
Each one shows thresholds which must be breached to tell you market is entering or exiting chop. Sharky also has a good indicator posted in that thread. Have not learned how to post thread links but will give it a shot.
Pursuant to my post #132 where the Indicator Zip files can be found I will attempt to post a chart here. Do not want to detour from Charles thread so if you have questions you can pm me but it is pretty plain. Use default settings and change colors and look as available on each indicator.
When price moves up (arrows and elipse), the white line on the KaufmanEfficiency indicator passes its threshold indicating a "possible" exit from chop. At the same time the bars have turned blue on the ChopTMFT indicating the same condition. Yellow bars denote market in chop.
See 10:52cst and 11:20cst. There is a failure at 10:41cst which is unmarked.
No Surly I would not take this trade as your entry would be within 10 or so ticks of the 4600 level.
I do not trade hoping and praying the trade will work, these whole #'s have punished me to much in the past, if there is not at least 15 ticks between my entry and the whole # I will pass the trade regardless of what the market does in hindsight.
I never scalp trade I must have at least a 1.5:1 r/r on the trade - it is not worth it to trade for 10 ticks while risking 12
Last edited by cjbooth; June 3rd, 2011 at 01:44 PM.
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I have to say I dont understand your post here. I see nothing on your chart that resembles my method.
I strongly encourage everyone to take my method and make it work for you even it means using extra indicators for confirmation. I do so with a word of caution as the more you add to your chart the more there is to confuse you, I'm sure you all have heard the "keep it simple stupid" phrase.
These tick or range bar charts can move very quickly at times - the more you have to look at to make a decision the greater the chances are you will be wrong
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