Recently we noticed that price was moving in a which is broken now. These patterns are mostly signaling reverse and medium to long term scenarios, so plan ahead.
Below the last wick of the unlucky seller we would never look to buy, as it is a very extreme if you go back in history. The first touch of the pool, as I named it, made price to engulf up. So whatever is our trade, the stop loss should mostly rest in this pool along with plenty of other traders.
I like USDMXN a lot because as an exotic pair, it's not widely traded and that's not necessarily bad because the price action is mostly clean and the patterns that form are widely traded the same way from the majority of the traders.