Reason for the trading strategy (technically):
Price has started to form a really nice reversal pattern as we first suspected. We remain below major resistance at 1.1666 ( , horizontal pullback resistance, breakout area, divergence) for a further push back down to 1.1573 support ( , horizontal swing low support).
(21,3,1) is dropping nicely with good downside potential. divergence vs price signals that a reversal is impending.
In my mind, the stop loss he’s used offers further protection to fulfil this trade. The TP whilst it may seem as though it is an unbalance R:R to yourself is actually further protection against the trade i,e less is more!
This is my understanding of this approach anyway. I could be chatting utter shit, he may disagree :D