Charter Premier Edition
Overview:
Your Charter Premier Edition subscription includes a strategy, an indicator, and two paint bar studies which all use a common logic engine that makes for an integrated and supported chart.
The Trend Line indicator and the Pivot Bar paint bar study show the underlying mechanics of the strategy.
Entry Logic:
The strategy waits for a red or blue pivot bar and then takes a position accordingly. A red pivot bar indicates a down market; so, the strategy will sell short contracts, or shares, when a red pivot bar is generated. Conversely, a blue pivot bar signifies an up market; so, the strategy will buy contracts, or shares, when a blue pivot bar is generated.
The specific entry point, in relation to the pivot bar, is controlled by the user inputs. An ENTRYMARGIN set at 1.00, for example, would place a buy order at 1 large point below a red pivot bar or 1 large point above a blue pivot bar. These are the same points as the underlying symbol uses.
The ENTRYMARGIN input may be optimized, if desired. Entries are made using Stop Orders.
Exit Logic:
Once a long or short position has been entered, the strategy places a profit objective in the form of a Limit Order to take advantage of the expected follow through market action. The amount of profit is determined using the EXITMARGIN input. This input may be optimized, if desired.
Negative numbers increase the thickness of the scalp. Zero is the factory scalp setting which corresponds to the yellow profit taking bar. To activate the profit bar, type “Yes” into the Profit_Bar_On input, in the format indicator box for the paint bar study.
Money Management:
The RISK input determines the approximate amount at risk for the trade in dollars. The program will enter a Stop Loss order for the specified amount.