Something I will look for is how the first candle of entry closes.
If i have a valid short signal on H4 and the next H4 gives me an entry and then closes bullish I will often close for a small loss rather than run to SL.
Here is an example on EA H1, its not a trade I would of taken for various reasons but it is a good example of something to look for.
We have a strong bullish engulfing(the large green candle from asian session last night), the next candle triggers your entry then closes bearish. You have 2 options, stick with your SL or close out for a small loss. In this instance closing for a small loss was the smart move, accepting small losses and letting winners run..... obvious stuff
Looking back on the same chart we can see 2 other long entries where our entry candle closed in the direction of the trade with profitable outcomes...
Remember momentum is a key element of this strat....
If i have a valid short signal on H4 and the next H4 gives me an entry and then closes bullish I will often close for a small loss rather than run to SL.
Here is an example on EA H1, its not a trade I would of taken for various reasons but it is a good example of something to look for.
We have a strong bullish engulfing(the large green candle from asian session last night), the next candle triggers your entry then closes bearish. You have 2 options, stick with your SL or close out for a small loss. In this instance closing for a small loss was the smart move, accepting small losses and letting winners run..... obvious stuff
Looking back on the same chart we can see 2 other long entries where our entry candle closed in the direction of the trade with profitable outcomes...
Remember momentum is a key element of this strat....
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