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I see a strong 3 bar Breakout which i also consider to be a leg 1, so i hold for some kind of 2nd leg.
In this case the 2nd ended up being tiny, way below the size of leg 2 i expected.
How would you guys manage this trade to avoid getting my initial stop hit ?
Exit on opposite 2 or 3 bar bear breakout ?
Here are my thoughts if you only look at the breakout itself, without context.
In strong Breakouts H1´s usually will be bought. In this particular example the H1 failed with B7 + B7 trapped bulls who bought the H1 (they bought one tick above the H1 high) and put there Stop under the H1 low. With B8 the Stop from the H1 buyers got hit and created a strong Bear trend Bar.
In my opinion B8 Low close was the first exit, because they were no bulls left to buy.
But if you want to hold further, you can wait for a possible H2, this one formed with B10 and failed another time and trapped bulls who bought one tick above B10. The H2 was a Trendline Breakout test and failed so a test of the Channel line or low is likely.
B11 was the second exit Bar in my opinion.
It would depend where i did enter my trade. With your entry i would choose B8 or B9 to exit my trade.
If i did buy on B1 i think i would exit at B11 if i was looking for a 2nd Leg up and did buy early and still holding through the Pullback.
Best Regards
Your joined date is quite interessting 2028 years ago 🙂
