In this example since we have our confirmed Resistance area at the predictive TL and we have our SL.
Using Candlestick patterns the 1st entry opportunity is the IB after the PB.
The black area is an intelligent area to move your SL to BE based on recent historical price action
The Conservative TP is an equal low minus any spikes that stick out by themselves.
Now we can judge RR which as you can see in the picture is greater than 1:1
Notice how I say conservative TP, what I mean is that clearly we are expecting a Lower Low, The waves of movement down have not lost momentum yet, so the RR will be much better in fact.
But if we assume the worst we have locked in Break Even at the next logical place for price to possibly create a Higher Low and we base our RR on the safe outcome of at least an equal low to be conservative. This way if we always look for 1:1 as a minimum TP based on conservative logic but we more often than not will always exceed that 1:1 RR
Using Candlestick patterns the 1st entry opportunity is the IB after the PB.
The black area is an intelligent area to move your SL to BE based on recent historical price action
The Conservative TP is an equal low minus any spikes that stick out by themselves.
Now we can judge RR which as you can see in the picture is greater than 1:1
Notice how I say conservative TP, what I mean is that clearly we are expecting a Lower Low, The waves of movement down have not lost momentum yet, so the RR will be much better in fact.
But if we assume the worst we have locked in Break Even at the next logical place for price to possibly create a Higher Low and we base our RR on the safe outcome of at least an equal low to be conservative. This way if we always look for 1:1 as a minimum TP based on conservative logic but we more often than not will always exceed that 1:1 RR