DislikedHi LJ,
Thanks for explaining the rationale.
Different points you point out do make sense especially w respect to order flow.
Another trade i took on demo.
This turned out well.
Beginner's luck? No idea.
I'll post and await your comments.
Was eyeing the 4hr channel descending trendline and 1.08 levels.
Bar closed well above and H1 showed 1.08 had turned into support imo.
Understood the FLR was pretty close at 1.0843 and took all off the table.
Maybe i should have left a small position running.
Other question is where should...Ignored
So when price closed above the falling TL (this is actually a daily bull flag breakout BTW) and above the 1.0800 daily S/R this was the first 'real' sign that we have a breakout - so now we are looking for price to hold the 1.0800 level as support and/or the former falling TL - this would be price proving to us that the breakout is valid.
We don't know which one will hold, we just know that either the 1.0800 or the TL must hold.
The three main ways to trade this are:
(a) take a trade on the close of the breakout bar
(b) wait for a retest (to happen very quickly after the breakout i.e. next couple of bars) of either the 1.0800 or TL
(c) wait for a LTF FTB setup or take the immediate pullback.
The last option represents the highest probability trade setup. The second one is more aggressive, the first option is not necessarily more aggressive but you are paying more for your trade because the SL will be at the same price as in trade (b) but you've got a much bigger distance to your SL.
This of course is reflected in the risk I would be willing to take on the trade.
With regards SL, I would say you have two options:
1. Just below 1.0800 - looking at how far price has to go to tell you the 1.0800 level has broken the 1.0785-90 looks appropriate for this.
2. Below the TL - this is the safest option but means you are paying more for your trade - I'd be inclined to opt for the above and then get in again at the TL if required but bearing in mind they are both essentially the same trade i.e. testing that the breakout has held true.
Apologies if this is a bit long winded response, but want to make my thought process as clear a possible.
