[Dogpile]

here is what I have been using and its worked great... see attached chart for todays action.

logic was that if 3 ATR's is a good stop -- then entering on a pullback and using the 3 ATR stop rule will make risk less than 3 ATR's. I have been using 1.5 ATR's as my pullback zone.

So in the chart... enter on limit near the lowest yellow line price and put a stop loss in at the lowest red line price -- so your initial risk is roughly 1.5 ATR's (3.0 atr stop with 1.5 atr pullback for entry). This has been working well on a 2-minute chart for me. A good move really shouldn't break the 3 ATR level.

fyi, this has nothing to do with a set-up -- this is only the management of a trade once you have decided you like the pattern.

man, I am rarely this patient but I really felt like we were going to make a lower low in the afternoon today -- note that it took a full 45 mins before my stop was actually lower than my entry.... but I did get my 'risk' down to 1.5 ES pts after about 20-mins...

Easylanguage code for this indicator:

value1= c[1]+(avgtruerange(10)*1.5);
value2= average(c,2)[1]+(avgtruerange(10)*3);

Plot1(Value1, "+1.5 ATRs" );
Plot2(Value2, "+3ATRs" );