Here is DAX's up move from earlier, the badly drawn arrows are the pull back areas I'm looking for, just something to give me confidence to entry really.
It's tricky, there isn't a lot of time some times, some spikes reverse hard, some keep going, I've added a delay to stop me going long just as it breaks down and trashes me nearly, so far so good. With trend has more strength ( think all Long ), the lower ranges will likely hold, but the upper ranges frequently fail, which gives more upside, why trading against the trend is kinda suicide.
The only loss I see is left of middle, I put a X under it, to be honest I've got a max 15 SL I'd of put it under the 42 yellow line anyway. They'd of been a short loss just to the right of the lowest point, trend changes. I'm exactly 74% profitable with this method and 1:1 R:R wise, I should be making 2x's SL but working on that, closing to early!
Not bad for a simple system, you can pick up trade and put away with no research or line drawing required mainly from my large screen phone or ipad mini.
ok, so the lower channel touch between the first short and cover would not be a signal as the longer-term MA was not in agreement.
First short, looking closer was going up, but weak up, I still class that as chop, if you can see more of the white 13sma based envelope, you'll spot a nice down channel going on there. See attached, pic that what your talking about. Some experience is required, it's not 100% mechanical and never will be, it's a guide to get you on the right track.
Zero time, end of the summer doldrums anyway so small ranges then extreme moves, guess I'll wait till next week.
Rough day, lack of focus, trying to work a d trade and get bigger moves has cost me dear -14 first trade, trend changed it happens Next trade got to +25 2positions, about to close, got distracted SL hit holding for higher -25 Next trade same again +15 turned into -14 doh! Dropped back to old 26 based method, keep it simple. +10 from that so far Down $600 area ouch