Sorry, I am still battling to grasp this strategy. You sold when it broke through the DC’s lower channel, right?
" I will exit this trade on the next break of the four week Donchian Channel to the upside toward the two hundred day moving average"
But if it pierces throught the bottom and you sold wouldn’t it be a loss if you TP when it reaches the top of the channel.
I apologize if I come across as newbie-ish, I am trying to understand how it works, so I can start trading this way.
Let us take a 4 week chart, with plain ole candlesticks as the price indicator. I have applied the DC channels and the 200 MA to filter out bad trades.
Price approaches the bottom of the channel and pierces. I sell, where do I TP/SL. Does the stop go to the top of the candle, above the body or wick? Do I move this stop closer to price when it breaks even and lock in profits, and just let it run?
I will appreciate immensely if you can add light to my darkness.