DislikedAnyone took this 2 4H trades on USD/CAD? I didn't because tey were straight into Daily and Weekly highs... As for the rules am I doing it right or I should have traded those? {image}Ignored
This is not a hard and fast rule but more of a 'guideline.' In general, assume S/R will be broken until it shows you otherwise. Don't be scared taking trades into S/R. If you're getting solid engulfs in that direction, just act like S/R isn't even there. However, monitor the trade closely to see how price ACTUALLY reacts. In other words, don't let potential S/R keep you from entering, just be on guard.
I did end up taking the UCad long at the beginning of the week. It was a decent H1 engulf above daily open. I have not added to the stack yet. Was away and missed some signals, and I don't normally trade this pair much. It has a much smaller average daily range than other pairs. So I just bought it and let it rip for the week. My initial risk was 35 pips, about 10 pips below the H1 swing low. I have now moved stop to +100 pips (3R), just below the current H4 low and PMH. Still has some decent room to breathe at the moment.
I show you this not to brag, but to show you that it's real. I have taken more losses than wins this week but am in profit overall so far. Just an example of holding positions for multiple R's instead of 1:1RR with 80% win rate. Keep in mind I'm making MINIMUM 3:1 on this trade so far. It still has about 1R of room to move, so it could potentially keep going.
The red arrows are other potential stacking areas in addition to my one entry.
The second screenshot is a one-time deal to show you that I don't bullshit.