MightyOne wrote:I would like to hear your thoughts on what I am about to say.
This is what I have been considering to complement my momentum trading:
I reduced my risk from 70% the 100 Bar ATR to 66%.
Keep in mind that I am trading WITH momentum so my
stop loss is a no momo proposition.
I always hug the momentum candle so what I am about to say applies to the candle that is adjacent to the momo.
When price moves through my stop loss by 5 pips I enter an order to re enter at my stop price.
If price stalls around my stop loss then there is a good chance that price will retrace allowing me to recover some or all of my losses.
If price blows through my SL by 10 pips or more and I have time to move the order then I will move the re entry to the mid point between my prev. stop and the low for example.
This is the theme:
"I was stopped out only to have price reverse and move to my target."
when you say "to compliment my momentum trading"
are you talking about trading momentum on its own or when you are trading a higher time frame MZ and are trading momentum away from the zone