DislikedSo in your own trading, Mike, how do you estimate the power of the first trouble area? Is it only through the stuff you already use in your trade evaluation like PPZs, TLs, patterns etc. or is there something about the levels itself you take into account?
And are you more lenient with moving your stop to BE when you expect a FTA to have some decent impact? Or in other words: do you let price come back deeper into your area of potential loss if you trust your trade?Ignored
I always like to evaluate my FTA in the context of the overall trade. The simplest way I can explain my approach would be
How strong do I believe my entry is?
How strong do I believe my FTA is?
What should I do at the FTA based on the above two.
Now the options don't have to be to go to b/e. Often for me I am looking to reduce my risk. If that happens to be at b/e then it's b/e. Often though its not. It's as price progresses and new information comes in at my trouble areas I move my stop up.
So a strong entry, a FTA isn't going to spook me out. I might say reduce my risk to a logical trade area. But for me unless I am looking for a quick take profit my stop doesn't go to b/e at any old FTA. I am just well aware of them. Each situation is of course unique
Hope that helps
Mike
