I don't understand just how much Mouteki most have done on this forum, but I have personally have been butchered in the chop chop. . Trends are fine, however, the chop really kills mouteki. .
Additionally, Mouteki is much more of an art than a science; that's my conclusion. Pick the two things that are correct, and you are gold, select on the incorrect ones, and you are lead. .
That stated, Mouteki operates on the principle of minor resistance, and trending tunnels. Normally a tunnel includes a specified amplitude, and so if that's accurate, you can draw a pullback/retracement lineup a la TD points, and that will define the trending tube; and now you simply assess the amplitude of the tunnel, and you will receive your intended TP point. .
That's very good in concept, and functions will in trending markets. . In chop chop however, that's a different story.
The problem exists (FULL CIRCLE BACK AGAIN) in the definition along with the capture of this definition of a fad. We can all tell a trend in hindsight, but a trend is kind of like pornography, hard to define but all of us understand it in hindsight when we see it.
I shall throw caution to the wind, individuals who are trading mouteki. . Not discouraging anyone from trading it, but after having HAND DRAWN over 2000 mouteki lines, I feel I understand the beast and understand how it functions...
and caveat,
there is a reason I do not trade it. .
That stated, I use them as my S/L points and lines, and also the work exceptionally well, better than anything else I've ever used. I've replaced my ATR-trailing stops with TD-line levels, and that has saved me a lot of pips...