DislikedDepends on what template you trade. Triangles, which I highly enjoy trading because of their chronically tight SL's and being a more frequently pattern than diamonds, 20-40 pips are in most cases enough. Again, nothing can be carved in stone here.
Here is 1 case on usd/cad last week. Although it seems like at total mess, it was quite easy to make at least 2 profitable trades, visualized with 2 green arrows. I was waiting to short it on the break of the lower boarder but price decided to break the upper boarder first making me skip it;Ignored
the templates(19.10) recommend that (in the example of your chart) a buy stop order should have been placed at the projected 3rd touch of the lower TL, i assume you place the order a few pips BEFORE the price??? wot is your general rule of thumb here??iv been considering using a 5 pip "buffer" for this type of TF??
also a problem i have found in the past with placing orders is trying to guess the time frames involved.The more time price takes to reach the TLs the more the projected price changes? wots your views on this??
thanx for your time,
jon.
p.s. i cant believe i didnt see that triangle/wedge last week!!my favourite trades have always been the intraday pattern breaks.small consolodation patterns coming off the asian session are great to trade.
Thanx mr igrok for quantifying these trades in such a precise and proffesional way fantastic work sir!
PATIENCE... DISCIPLINE