I agree the bar you indicated on your 377 chart is the one that satisfies the requirements of Charles' method - the only exception might be the R:R because the stop is potentially 14 ticks away depending on where you got filled on the short (Charles suggests being 2 ticks above the last swing high for a short).
I know you've been watching the TF as well, do you feel there are any significant differences with regards to this specific method when trading the stock indices? This is something I'd like to compare notes on...
I saw this trade setting but passede on it for these reasons
1. the retracement before the entry was moving up really fast showing a lot of buyers were coming in for some reason
2. when the entry triggered the market again jumped really fast which pretty well assures you of a bad fill
Where you got filled the R/R was out of line but you did a good job getting out at BE
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Very well done supermht. I think you played this day remarquably well in line with Charles's approach. It would be a great idea to record and anotate the day along with the perfect trade management vs what you were able to do.
supermht, i would be curious to see your point of entry for the trade indicated on my chart. I have not traded it but i have indicated where i would have considered an entry (see #3). The entry bar took some time to qualify for a reasonable risk on my chart. Thanks.
I am not sure yet. I have not enough screen time with Charles's approach and forward tests. My first impression is that for the ES it can work if the daily range is above average, ie, above 15-20 points minimum. For the RUSSELL, it depends on the quality of the pullbacks into the MA and cloud. Sometimes, the pullbacks are too short, not enough to be traded or they go too deeply into the cloud. For the ES, the fixed profit target needs to be worked a little bit, i am unsure, maybe a risk of 6-8 ticks with a profit of 8-12+ ticks. I would not consider a close within the cloud as an exit if price goes against me. I would accept some heat with the ES. The ES has a tendency to break a level but immediately make a pullback to your entry to force your hand so you need to accept that.