The strength of this rally and the fact that I've been on the wrong side of this pair a couple of times lately ---- A test of resistance seems more likely than a quick reversal at D. And, it will lower the risk. Can't make much of an internal wave count so I'll fall back on the candlesticks for a final entry trigger.
Comments
Sandeep_Gupta
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May I know the basis of stop loss at 1.02886 please?
dojitrader
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As placed on this chart they do seem a bit arbitrary.
The idea was any price action over the resistance zone,
which is above the .786 retracement of the entire
swing high to low makes this idea wrong.
So it is about 15 pips above to allow for a little push against
likely stops and a total of 35 above the entry.
(my standard comfort zone for a loss - not very technical choice)
Of course, if the candlesticks signaled a higher entry the stops
could also rise - perhaps to the 1.13 fib ext of X to A or even
the recent highs. But, that is too much for my comfort zone.
For me, anything above the .786 and I no longer have
confidence in the trade set up and want to get out.
Hope you're pulling in those pips !!!!!