If you do not use a 'balanced' RET tool then constantly reversing your tool is a nightmare on small charts esp. if your Fib tool does not measure between ## and 00 while you are sizing the box.
Take a look at what happens when you buy on ## VS buying on a RET:
I know I'm gonna get spanked for this
00 is your Position (ie "mental stop loss") correct?
and I plan to risk no more than 4.5% on a trade
then the distance from 00 to ## (on the above chart as it is drawn) is my space? and the 4 units bought over that space is 4.5% of my account (BP?)
If I were flat and decided to buy 8 units instead of 4 then my Position would end up being NOT where the 00 line is but where the 00 line is that is under the 8, ie at the bottom of the retrace at 29954.
AND that 8 units over that space would be 4.5% of my account, correct?
I am constructing this in my mind as I write. Even if this is all correct, I am sure that after I ponder over this pic some more I will still have many more questions.
Ok, I've changed this numerous times, now, I'm gonna hit Submit.