Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
CJ, I am really enjoying your thread and trying to follow it accordingly. Is there anyway to post a template of your trading chart. Once again I am really enjoying your thread.
Surly-
Thank you for your post. I have heard of doing this before but have never done it. Great to be able to see where the 1508 is relative to its EMA on the 377 chart. Simply multiply the 13 EMA by 4 to arrive at 52. The multiple of 4 is the relationship of 377 to 1508. Never knew how to do it. Great.
The rule is during an uptrend if price makes a lower low on the 377 ticks chart then to consider an entry you need to get a double bottom formation with divergence and price closing above the cloud.
Your welcome - remember the relationship is not 1 to 1. The 52p EMA is an approximation - it will not agree to the tick and will sometimes move differently. Watch it for a while and you'll see what I mean. It is great as a reference though and I find it helpful to have on my 377 chart.
I think I can sum it up with the question........ Are Double Bottoms to be treated the same way that HLs are treated on the 1508 chart, while in an uptrend?
One observation, you were shorting right into support. The potential was somewhat limited even if the rules were respected. If you look on the left side, price made 3 attempts to go lower and it failed to even make a true double or triple bottom. This is usually a sign that demand is still present. In fact, from a demand/supply perspective this was a place to go long but from an auction point of view. I am always hesitant to open a trade in such a risky configuration. Your first question should be, has this trade some merits in terms of potential, are there any obstacles in the way that could compromise it.
Here is a trade setup on the ES that comes close to respecting Charles's rules. We need to live with such ambiguity and be ready to risk a little bit if the potential is appealing.