Hello,

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.

Thanks in advance and regards.


edit : If that is any help, I use tick charts.

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%

I'd like to express my opinion about using limit orders to enter on pull backs;

You don't always get filled on would-be winners, but you always get filled on losers.

I'd suggest using market orders or marketable limit orders when the market reaches your area of interest.

krazyanyway 

Hello, 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. Thanks in advance and regards. edit : If that is any help, I use tick charts.

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.

kbit 

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.