The trade was: Long 1.2133 Stop 1.2085 Target 1.2190. What was the problem? This trade was taken on a daily signal. Often these type of signals need breathing room. In other words, price tends to retrace partially or fully after the signal which occurred at the break of the high (1.2133).
The best way to capitalize on this is to split the position in half. Buy half on the break, and place a limit order at some proportional amount lower to take advantage of a situation like the one occurring now. If price never pulls back, you are in the market with a smaller position, but at least you are in.
If the market retraces and fills the other half of your order, now you have a lower average price which will allow you to use a wider stop. Either way, this would be better than all in, all out because your risk is basically the same while giving the market more room to breath.
If I had placed the stop below the low, this trade would still be active. If the market reverses back up which has higher probability at these levels, I would still be in.
From a technical standpoint, this market is still fluctuating around a very important level. The 1.2080 level is the range reversal zone boundary. If it holds here and mounts a reversal, 1.2195 is the first resistance (.382 of recent swing). This is the conservative target since a move off of the range low has the potential to reach the 1.2279 to 1.2383 (.618 of recent swing).
If another trade signal goes off, I will send out more specific instructions on how to enter the trade based on what I wrote above, but it will only be available on S.C.