Trading is similar to investigative work. I gather evidence to substantiate a claim and this is how I do it.
Euro, having break new high's continue to gather pace in bullish momentum. The reason I don't trade
breakout is I could not quantify how much the move is going to be. The traditional way is to measure
harmonic moves and expect the current move to match previous move, but I find this method ineffective
as it was before. You could also try fib extension, Atr etc for your exits.
I am just more comfortable (a point I keep bringing up) sitting back and wait. Thus, I have time to gather
a bullish case for Euro (E6) and will consider taking a position once I see it retrace to 61.8% and above.
The bulls must be able to hold its previous bullish structure. If I get in, my stop is 5 - 10 pips below the
blue zone highlighted.
I don't place an arbitrary figure on how far your stop should be place but do note that the shorter time
frame you trade, the lesser allowance you have as the risk to reward will not be in your favor. Take
your time to experience this and slowly you get my point.