smithacus wrote:Hey Pika::,
Sorry but i do not clearly understand your question. . .if you are asking if i enter when previous 2 candle low is breached? in an up move that makes the last bar a bearish bar? look at the chart below, look at the bear candle labeled 1 . . .the range is bigger than the last 6 candle (marked at point 2). . with a divergence and at round number and that zone is also an old resistance. . .see what happened next? . . i would have entered at the previous red candle (count 2 candles back before the trigger candle marked at label 1) . . .had the close of that candle lower than the blue up candle. . .the blue candle low was breached but couldnt close below its low. . . so i waited and the big bear candle appeared with it low eclipsing the previous 6candles . . . which meant most buyer's orders have been absorbed and now its time to sell. . .
Tro .. .thanks for the indicator. . .i will play with it to see how it may help.
Thanks, smithacus. You have confirmed my thoughts and I really appreciate your sharing here on how you make a trade entry. If I may ask further, how do you determne your stop loss and take profit? Do you set them based on S/R levels, or based on a fixed number of pips (like TRO rat reversal method of 10 pips), or perhaps a certain ratio of the daily or hourly range?