I just wanted to show the entry method. Otherwise, I didn't pay attention to the risk-to-reward ratio or what ratio it gave. It can be 1 to 1, 1 to 2, etc. Managing capital and trading style is up to you.
When a stop loss gets hit, I recommend waiting a bit for the market to form new highs and lows before trading again, because the market might be ranging
In the image below, the stop loss could have been adjusted slightly since it coincided with the close below the Kijun line. After that, you could monitor the market and exit the trade if another bearish candle appears. However, for now, I just want to explain the trading method and what might happen after the stop loss is triggered.
And it's not like we're supposed to just take a buy trade the moment the price goes back above the Tenkan and closes. Usually, the first trade after the price rises above the Kumo (the cloud) is considered "fresh" or new. After that, a positive close might happen, but the price could then reverse and give a bearish cross.
When a stop loss gets hit, I recommend waiting a bit for the market to form new highs and lows before trading again, because the market might be ranging
In the image below, the stop loss could have been adjusted slightly since it coincided with the close below the Kijun line. After that, you could monitor the market and exit the trade if another bearish candle appears. However, for now, I just want to explain the trading method and what might happen after the stop loss is triggered.
And it's not like we're supposed to just take a buy trade the moment the price goes back above the Tenkan and closes. Usually, the first trade after the price rises above the Kumo (the cloud) is considered "fresh" or new. After that, a positive close might happen, but the price could then reverse and give a bearish cross.
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