DislikedHello,
I've started reading this thread. I regret not reading it earlier. Can someone who has been following and trading this method please confirm that I understand it correctly.
step 1) Identify the chart patterns james has taught us. That is, dblhc, dbhlc, beovb, buovb and pin bars.
Step 2) see if they occur at s/r lines and trendlines.
step 3) see if they are at major fib levels.
step 4) see if step 2 and 3 occur at higher time frames.
If all above (basically the more confluence the better), then we enter the position. Is my understanding correct?
Also, how do you trade beovb? do you just enter at the open of the bar (third bar) after the pattern. Another question, how do you exit, do we exit at the next s/r level? how are the moving averages in james charts used? and how are the keltner channels used.
Does any post have a summary of the method.
Many thanksIgnored
I generally trade outside bars and double high/lows by fibbing the bar and looking to get in on a retrace (between 50% and 61.8%). SL is set below/above the bar.
Exits are quite discretionary. Yes you can use S/R/Fib levels. I also like to use price action.
I have the 365 MA on my chart, but rarely use it in my decision making. This my personal preference though.
I don't use keltner channels either, sorry can't suggest anything there.