Hello everyone,
I did not trade the usd/jpy, but if I were to trade the upside break of that first inside bar, here is where I would place my stop loss. (see chart) I would place my stop below the second "perverted" inside bar as House Trader calls it. (by the way, I like your method HT, keep up the great posts). Since the first inside bar's low was breached, I would no longer consider it valid support. By placing it under the following bar's low, it is under the most recent swing low and the 38.2 fib retracement of the current day's range. Ofcourse you must reduce your position size to account for the increased risk.
P.S. thanks to Jarroo for starting this great thread and thanks to all of the helpful people posting in it.
thanks, dave
I did not trade the usd/jpy, but if I were to trade the upside break of that first inside bar, here is where I would place my stop loss. (see chart) I would place my stop below the second "perverted" inside bar as House Trader calls it. (by the way, I like your method HT, keep up the great posts). Since the first inside bar's low was breached, I would no longer consider it valid support. By placing it under the following bar's low, it is under the most recent swing low and the 38.2 fib retracement of the current day's range. Ofcourse you must reduce your position size to account for the increased risk.
P.S. thanks to Jarroo for starting this great thread and thanks to all of the helpful people posting in it.
thanks, dave