would this be an accurate summary? use a 5min chart with SMA(40) and SMA(480). only trade when the 480 is pointed in one direction or the other, if it isn't clear, take the day off. when the body of an entire bar is below the 40 (in the case of 480 pointing up) or above the 40 (in the case of 480 pointing down) take a position in the direction of the 480 (ie buy the dip, fade the pop). exit when price action recrosses the 40 and wait for next signal.
Kinda sorta? I've never used the SMA 480 though. I only use the 40 bar MA on the 5 min chart. I'm sure there are variations that can be applied but I just have not applied them. I would say that the 2 bar Charlie is a great place to start for the beginer. I don't know if you would benefit from that style of trading. What ever you are doing right now seems to be far superior than that.
Maybe I'm not looking at it correctly, but "2 bar charlie" doesn't look too good for the last few weeks. If you go by the 60m chart with a 40 day MA keeping you only on long trades since 10/2, then there are very few points since then to be had and probably at least as many lost points. What am I missing? And today...how do you deal with today? Again, if the 60M is in charge, today would have been a loser too correct? Looks like the first chance to get in was the close of the 1010 pacific bar at 1037.25 on the ES. Unless all you were going for was 1.75 points, you would have been stopped out or are still in a losing position now at 1220 pacific. Maybe it will come back before the close. This would all be quite different if I didn't have to use the 60m chart as a filter. Am I using it correctly? jd
Great question! You make a valid point. Lets explore this system on Tuesday. I think a "realtime" walk thru is in order. This should be a good discussion. Thank You for your inquiry. gotta go! p.s. Please remind me on Tuesday to walk you through a realtime trade with this method. If I forget please PM me to remind me of my promise. I get real absent minded at times.
Today is not a Holiday for the markets. Swing Vix shows a high probability of a break out to new highs is possible today.