2 Bar Charlie Day Trade System ("LIVE DEMO")

I have a little experiment to show you all after the live demo. I think it will be VERY helpful (I hope) to many.

Thank You for having patience with me. I also used to teach trading mechanics with live demo when I was a broker. thats how I raised accounts. I would have potential local clients to come and watch me live trade the ES.

O.K. back to business. The NQ is holding nicely here. look to push higher now that we are beyond 10:30am EST.

 

I am trying to be fair to Novice trader because you are in a good trade which had nothing to do with system described.

 

No my friend. We are dealing with market bias as it realates to the system. I will explain more later.

 

The purpose of todays live demo is not to prove or disprove of the system or to demonstrate positive results. The purpose is to demonstrate various ways to use it.

 

So far it has been about an hour into this trade. You have added to your overall position trading in the direction of the upward bias of the overall market these last few days. The Dow is down 23 points. What to do????

Situation #1) Your in a trade with a stop @ 1406.

Situation #2) Your long from the 1408-1410 range with added longs @ 1413-1414 price levels.

The first step is to look again at the 60 min chart.


......everybody please pull up your 60 min charts.

 

Tampa lives ! !

 

QUOTE]Quote from T-REX:

The "2 bar charlie" system:

Tools.
Use the 60min chart to find current intra-day trend.
use the 5min chart to time entry point.
Use a 40-bar MA.

Rules.
When the 5 min bar crosses above the 40-bar MA = buy.
When the 5 min bar crosses below the 40-bar MA = sell.

Filters.
Wait for the low of the 5 min bar to close above the 40-bar MA = buy.
Wait for the high of the 5 min bar to close below the 40-bar MA = sell.

close of the low of 5 min bar was at 1414.50, so based on 60min 40MA: long at 1414.50.
and please note that this system has nothing to do with T-REX ability to predict price action

 

Thank you for your class. The original purpose is to demonstrate how to use a viable technique to extract money from the market.
I really believe that you can learn something. That is why I have taken time out of my day. I want to help people. Especially those who just cant seem to make it work for them.

 

Where would you place your stop, balda? (and thanks)

 

We have now found ourselves in a rather difficult position. It would appear that the market is now undecided on direction. We are now in the midst of an inside day. But there is still time.


What to do: Hold positions. Hold stop loss in place.