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This is my first post in the forum, so be gentle ;p
I trade the ES with a method that uses a limit order the majority of the time to make entries.
I focus on pullbacks from a trend and will usually post a limit order where I figure the market
will likely pullback and then resume. It does work pretty well for me, but since I like to keep
my stops pretty tight, I do get whipped by 1-2 ticks often.
My question is : what would be your suggestions for indicators that could help measure/gauge
a pullback ? If anything, I'm looking for an indicator or method that would help my precision in
order placement, so as to not get tick-whipped as often.
If the chart has a clear uptrend for instance, and then it start experiencing a pullback, I have found that a fibonacci retracement works best for me to delimit the important levels of support.
They key numbers that work best are the: 23.6% 38.2% 50% 61.8% and 76.4%
Successful people will do what unsuccessful people won't or can't do!
Well if you get taken out by a tick or two often, just increase your stop by three ticks....
Aside from that I can't think of an indicator that could tell you anything and be reliable....maybe if you identify the areas that you want to trade from you could go down to a smaller tick chart and get in that way.
Increasing stop size was definitely my first thought, but then it throws my R:R a bit because I can't magnify the target in the same way (that would completely change the expected outcome percentages). The more I think about this, it seems I'll need to go and backtest again with a different stop to see if it increases win% enough to warrant a larger stop.
I do use a smaller tick chart, but boy is that ever sneaky.
I also use fib retracements, but I always find myself wondering if there is an additional way to gauge the expected range of a pullback given the recent push.