I'm doing my second reread of the posts here using Seiden's levels idea. I have a question about levels on levels. I've gone through about half of Seiden's webinars. He usually emphasizes that a level on top of a level is a strong sign. But he seems to be less clear about where you put stops in this kind of situation.
Suppose you have a supply area that is 20 pips wide, and then just a couple of pips above that, there is another supply area that is also 20 pips wide. If you put a pending sell order at the bottom of the first supply area, you could logically put your stop at 20 plus a couple, or as large as 40+ to cover both supply areas. What are your thoughts on this?
Suppose you have a supply area that is 20 pips wide, and then just a couple of pips above that, there is another supply area that is also 20 pips wide. If you put a pending sell order at the bottom of the first supply area, you could logically put your stop at 20 plus a couple, or as large as 40+ to cover both supply areas. What are your thoughts on this?