You dont need to sit at your computer or laptop every minute of the day unless you scalp trade or use the LTF charts you may need to be more actively involved.
I want to highlight the importance of market OODALOOP - trying to always stay in front. As you can see here we have identified the possibilities of a potential Opportunity.
If you look close we could also have a smaller valid using the current B leg as the X leg for the smaller one higher up.
Now what I do want to say is when you have identified these and want to keep analyzing other charts, how many times have you missed the pattern from being busy you have 2 options.
1. Set yourself price alerts so when it goes past that level you can action your orders.
2. When you have found the ratios or entry levels - immediately set your orders in your trading platform
This could be the difference of missing a trade and losing profits, or some basic simple steps to ensure you are involved and not losing profits.
With this current setup - price may even just keep going up, this is not a concern, what we are doing is identifying where price is most likely to go and how it will get there. This is when we use structure and Fibs to predict where it will most likely go so we can get involved.
I also wanted to explain this setup if rice did come down - normally I would use a standard 113% fib Extension for the Minimum Stop Placement - how ever in this case I wouldnt even bother
1. We have previous structure level that I have circled in Red - if I use the 113% it is dead on this level.
2. In a case like this I would need to be below that previous structure level.
3. Would I be ok with losing another 30 or 40 pips in this case just to be at a safe stop level, this is the question you need to ask rather than just enter the trade, remember its about protecting capital and winning your trades. Most important to follow your rules.
4. Would I be ok by moving my entry level down so that it minimizes the risk
5. Would I be ok watching price hit the 78.6% then a complete reversal and hitting all targets for 150+pips that I missed out on.
This is the psychology that comes into trading, I would be very happy not getting involved missing the trade and following my rules rather than seeing a loss which exceeded my rules.
Remember if you follow your rules and lose the trade its still a good trade
If you dont follow your rules and have a winning trade this is a BAD trade, still good to win but eventually you will keep breaking the rules and continue down a bad path.
Now in this case after preaching to you lol, I would be happy to follow my rules and use the 113% only because I have backtested and forward tested the and my rules tell me to trade as many as i can possibly find. But my main explanation was make sure you look left at structure, its not guaranteed to stop at these levels but it has a higher probable chance that it will.
If you had $0.50 cents and every time you put it in a machine and the machine spat out $1.00 how many times would you do it? Thats right as many damn times as possible.
Anyway guys - just try to stay in front of the market, dont feel like you need to be involved, just wait for you time to enter, remember the Stock Market is a device of transferring money from the impatient to the patient.
All the best and good luck trading