Similarly, trading without a stop loss is equal to killing yourself.
Predicting and placing a stop loss in a trade is an expert ability . Trading without constraining limit is highly risky.
So In this post, we are going to discuss placing the stop loss with an efficient rate of success.
While trading on waves and classical chart patterns, your stop loss should be very tight, safe and secure.
There are a lot of techniques to place a stop loss.
In this article, we will encounter simple and effective technique for stop loss placement. usually, we call it as placing behind the impulse.
A tight stop loss could reduce the chance of loss and increase the rate of success.
In above chart, stop loss placed at the lower end of the previous momentum.
Once the price has set up a new trend (or) new benchmark means, the probability for coming back is low.
So placing at the lower end of the previous momentum was safe and secure move.
But it varies for SELL set-up. In sell setup, your stop loss should be at the next of the previous marked high.
In that, we placed stop loss at next resistance level of the previous momentum.
If you find useful, hit like and comment
follow our updates for more profitable trades.