I recommend to use Historical levels or Breakpoint of the trend:
- Most of the retail traders set stop Losses below or above such key levels.
- Stop Losses of retail traders is a Fuel for Big Players.
- You Have low and predictable risk if you open entry after the false breakout of a key level.
How to find such levels on a chart?
- Price bounced from it and started a new trend.
- An instrument made deep pullback from that point.
What can make entry more accurate?
Price sharply came to such level. Moved 2 or 3 Average daily move.
UK OIL Example. 01 Aug 2019 oil rate drop-down 400 pips. It's more than 2,5 average daily move. after a false breakout price bounced up 300 pips. Risk in that entry was 30 pips. Potential profit in 10 times bigger.
1. US 2000 Index
Price bounced from the breaking point 1454,6.
2. UK 100 Index
5. US OIL https://www.tradingview.com/
If u trade such level u can take in 5...10... bigger than you risk.
P.S. Write your thoughts about this strategy.
P.P.S. After 100 like I will write another educational post about my trading strategy and how you can use it.