{quote} Thank you my friend for your inputAnd how do you will define your entry's in this case? Do you will set pending limit orders on 50% fib retracements? Thanks
.. just 40 - 50% of the candle body.. IE open to close.. Set your limits / entry orders a few pips towards your intended direction from them.
for example here. What would you rather? 1. Buy at the high when the candle closes with large risk down to last resistance broken / support retest possible. But definite be in the trade with high risk. 2. Or set an entry order 40 - 50% down, hoping for the retest of breakout, before continuation? With smaller risk, and near broken resistance. Possible you might not get filled and miss the trade. I'd rather look for the lowest risk entries. Let market come to you, rather than chase it. {image}
food for thoughts, i will check this by a few paper trades
{quote} i see your point leeshindig...but i never would trade this bar since this huge BUOB is not on swing low
{quote} Dude it doesn't always matter if it's at a swing low, it's whether there is momentum. The 3 recent wicks and large bodies tell you exactly which way people are trading this. No point trying to predict the bottoms or tops, trade with the flow.. Entry at half the candle.. complete {image}
Juri. A little something for your research. A LOT of bullish and bearish engulfing patterns reverse and wick 40 - 50% back into the engulfing candle body before they continue. (in high timeframes). You can use this to set an entry order and reduce your risk.
Happy pipping!
It happens so often it can't be ignored. However, you will miss some entries occasionally, when the direction is to strong for a retrace. When I quoted the 40 - 50% retrace.. again, that may not be set in stone. It was just to give you an idea.. Do some research on this below.. I marked on your chart where possible breakeven stops are placed for traders who got into the move early. Many breakout systems trade the high and low breaks. If there were entry order below those candles, then they were taken out for breakeven on the candle wick that retraced,...
