Disliked.
If you want my thoughts on how much room? ...Enough room to get into profit and start moving stops. Where the stop is likely to be nicely protected. ...That's just me though.Ignored
Those first levels almost always see a bounce of some kind. The question is always is it just a temporary bounce or a full on stop-killing reversal.
If that first level is far enough away from my entry then I have some breathing room to work out which one it is. My stop gets to break even and the trade still has room to move.
If that first level is 15 pips away, well it's going to put me in drawdown even if it's only a small bounce. And I find that hard to handle.
I've had too much time in a cold room with Mister Drawdown to relish the prospect much. So now I tend to ask, can I get my stop to break even or take profit safely before the first area it's likely to reverse. And in rare cases, is this bar so strong that it's very likely to trump that first area.
As Mike always says, if we see that first area and decide to hold through it, then that's a trading decision. But we can't be surprised if it turns around on us from that point. Price hardly ever turns around for no reason. If you're scratching your head thinking "why did that turn round on me?" then the chances are that you've missed a bar high or some area of S/R on the chart.