There's nothing to it, really. I'm just looking for obvious S/R (support and resistance) levels and getting in about 5 ticks before the level is penetrated, on the assumption that many traders will also see these levels and play the breakout.
There's not really any indicators. The white line is just a donchian channel that I like to use to keep things nice and tidy, but it's not necessary to have it. The S/R levels are pretty obvious.
Here's another screenie...
The following user says Thank You to Jugador for this post:
The problem is where do you put your stop? If you put it close, the market could easily pull back a few bars and stop you out. If you put it below the last swing pivot, then one stop loss could take away several winners.
Maybe we could do something like this. Say we have a $25,000 account and we don't want to risk more than 2%. ($500) So, here's another screenie of the same chart, but this time, maybe we can "add" a contract if it moves against us a little.
On the 1st trade, we buy 1, and the market goes right on up, so were good on that one.
On the 2nd trade, we buy 1, it comes back 5 ticks, so we add another unit, and the market goes on up, so were good on that trade.
On the 3rd trade, we buy 1, comes back 5 ticks, so we add 1, comes back 5 ticks, we add another, comes back another 5 ticks, so we get out for a $375 loss or 1.5% of our account.
On the 4th trade, we buy 1, and the market goes on up, so were good on that one.
Try doing the opposite of what you're doing. When price touches the S/R line, fade the move. If it's moving up then go short. This way you can set your stop on the other side of the S/R line. And if price crosses the S/R line and you get stopped out, you could also use the stop to get yourself in.
Also remember that a strategy cannot enter and exit on the same bar with Ninjatrader (or any other platform). It's not reliable.
The following user says Thank You to cunparis for this post: