DislikedHi,
this is my first post here. This is an amazing thread, so I'll do my best to absorb as much as possible while reading the entire thread. It will take a while but in the meantime, I would like to submit this to your opinion. Hopefully I won't bother anybody around.
This is a CHFJPY setup I have seen in daily chart. My rationale to go bearish slightly below the salmon rectangular area is:
1.- Overall trend is bearish.
2.- Daily BEOB
3.- Price came below the Fibo Confluence marked as salmon, so awaiting for a pullback there to maximize my entry...Ignored
Welcome aboard our "little world"
Firstly since you are new to the stuff you are advised to play only the conventional entry method i.e take a trade on the break of the bar. I understand what you are trying to achieve with a tight stop but this skill is best left for later...
Things that you need to work on right now are finding the key zones in the market, playing the break of good sized bars and deciphering the reasons behind the movement of price, before and after your trigger bar.
Coming to Chf/Jpy specifically, I am a very keen observer of the close of the bar specially when price is heading into traffic or a supp/res zone. What I see here (and have labeled on the chart) is that your BEOVB found due support at the marked yellow ppz and failed to push through To me that means a lot. All the plus points you mentioned are obviously there but then it's all about stacking as many odds as possible in your favor before pulling the trigger.
An entry order, if you have noticed would still be below the yellow ppz and hence a pending order still looks a nice option, but honestly I find it easier to just stay back on the side lines until I can see a hard break of the near by ppz even if it means entering via a market order. Again it's all about "resisting the urge to jump into a trade" rather than "succumb to it". You are not a slave to the market or your emotions...you (and for that matter anyone) make your own destiny.
g.
I believe . . .