I have noticed that we have spikes that activates buy stop orders and cancels out stop losses. This is bad.
But there is a way around this. If we look at how long the the tops last, we can see that there is a 1 day window before a drop or jump in price. If we wait until the big spike has passed, represented inside the black squares, we have a small window to place our buy stop order without it being activated on a false jump in prize.
The blue horizontal line represents such a buy stop order, but only place it after the spike and before the 1 day window. This way we can join the potential upside more securely, and if we go down it is never activated and we can then cancel the buy stop order without loss.
The teal vertical line represents the end of our current 1 day top. The closer you get to it the safer you are.
I still belive we will go down for a retest on the big green support line. But no trader knows the future.
I hope this helps placing a more safe buy stop order.
But there is a way around this. If we look at how long the the tops last, we can see that there is a 1 day window before a drop or jump in price. If we wait until the big spike has passed, represented inside the black squares, we have a small window to place our buy stop order without it being activated on a false jump in prize.
The blue horizontal line represents such a buy stop order, but only place it after the spike and before the 1 day window. This way we can join the potential upside more securely, and if we go down it is never activated and we can then cancel the buy stop order without loss.
The teal vertical line represents the end of our current 1 day top. The closer you get to it the safer you are.
I still belive we will go down for a retest on the big green support line. But no trader knows the future.
I hope this helps placing a more safe buy stop order.
Trade closed manually