Hi All:
Just got out of the prev. short trade.
I see many of you got out early after the strong bullish candle. I understand that way of managing trade as well.
Some times, I try to give the trade a little breathing room. I've marked the initial SL and the 1st SL move on the pic.
The 2nd candle after the big bullish candle formed a swing high and I decided if price wanted to go higher after making the higher low, it would first have to take out the most recent swing high. To me, that was the area that I thought would make or break the trade. I decided to put the SL there and see what happens.
After the higher low, price did not go above or even reach the recent swing high (SL1 area). This gave me enough courage to let the SL sit there and wait to see if the higher low level would break. It also looked like a triangle pattern to me.
And finally it did.
Just got out of the prev. short trade.
I see many of you got out early after the strong bullish candle. I understand that way of managing trade as well.
Some times, I try to give the trade a little breathing room. I've marked the initial SL and the 1st SL move on the pic.
The 2nd candle after the big bullish candle formed a swing high and I decided if price wanted to go higher after making the higher low, it would first have to take out the most recent swing high. To me, that was the area that I thought would make or break the trade. I decided to put the SL there and see what happens.
After the higher low, price did not go above or even reach the recent swing high (SL1 area). This gave me enough courage to let the SL sit there and wait to see if the higher low level would break. It also looked like a triangle pattern to me.
And finally it did.
Attached Image (click to enlarge)
your explanation is helpful. My main point is that we all have the tendency to try to wear someone else's thinking cap and turn an investigative process into a dogmatic one. 
