Follow through with the breakout buy which we made on Friday targeting the upper red zone at first and going to the fair market value zone at later stages. In this case, your stop should be just under the critical level risking about 66 pips. Placing stops anywhere before the low is counter productive, don't do it.
If you are undecided or pessimistic about the long but not really sure, try bracketing the market around Friday's price action. be careful though as I am expecting a trap on Monday (expect whipsaws)
Wait for the 'CS' setup
What's next: We need to now break TS, and close above it
I'm still long .. please check the new chart
As you know, there are 2 ways to enter the market.
1. On a breakout
2. On a retracement
Personally, I like to use the second and avoid the first as much as possible. however, if I do use the first, then i will usually enter with only 25%-50% of my intended final investment size as you've seen me do on many occasions.
As for this trade, the stop loss is just under the critical level and not 25 pips under it. The 66 pips I referred to is from the breakout entry level to the critical level.
I hope that clears up things for you
Many people use fib extensions (those are retracements that are greater than 100%) to place their stops. With my critical level which is very very accurate, I personally like to use 2-3 pips but I advise you to do a bit more because sometimes price punctures the CL, retraces (where you can get out) and then comes back to complete its journey.
As for H1, we are now retracing. We do not know when this will end until it ends. It should not pass the low since it only did 1 leg up.
I still try to learn to be systematic though, trying to get rid of all those emotions and just analyse. On 1H chart there is a big red candle that closed below TS, though TS is still pointing up... CS is heading slowly north, but it is in the clouds... when it reaches the right border it will probably go up, but it may not either. Though the pattern looks very similar to the one that has developed the 17-05-2016. So then again the best bet would be just to enter. Because otherwise trying to chase the ideal deal you may miss the real deal, right?
Whenever the market switches from one direction to another, it has to go through labor pains. Labor pains show up on the chart as short struggles in both directions. So once the market break the critical level in the first leg, I just wait for it to settle before reading its signals again because most of its messages will be the pains of disconnection.
I hope that makes sense to you