{"id":61138,"date":"2016-11-27T01:57:39","date_gmt":"2016-11-27T09:57:39","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=61138"},"modified":"2018-03-25T07:11:21","modified_gmt":"2018-03-25T14:11:21","slug":"tight-stops-selling-wedge-top","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/tight-stops-selling-wedge-top\/","title":{"rendered":"Ask Al: Tight stops selling wedge top"},"content":{"rendered":"<h2>Tight stops with wedge top setups<br \/>\n BPA trading room Q&amp;A: April 1, 2016<\/h2>\n<p class=\"content-box-green\">Question: Will you explain again, with context, why selling 68 high for a scalp is a good trade, for a stop four to five ticks above. With context, when is it not a good trade?<br \/>\n <em>Video duration: 2min 57sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/189adfbb1318e5c290\/b7cb810553574f59?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/2oNdBuZPTPY\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube channel<\/a> if needed.<\/p>\n<h3>Tight stops &#8212; context needed<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top-300x206.jpg\" alt=\"ES Chart Tight Stops Selling Wedge Top\" width=\"300\" height=\"206\" class=\"alignleft size-medium wp-image-61156\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top-300x206.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top-768x527.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top-600x412.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/ES-Chart-Tight-Stops-Selling-Wedge-Top.jpg 860w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Yeah, 68 is a special situation, right? And you don\u2019t get these every day, but you do get them occasionally. So here we have a <a href=\"https:\/\/www.brookstradingcourse.com\/price-action\/10-best-price-action-trading-patterns\/\" target=\"_blank\">Wedge Top<\/a>, two legs, three pushes up &#8212; one, two, three. You could say it\u2019s a type of Low 4 short. Tried three times here to get short. We tried one time here, we\u2019re trying again there. A Low 4 short is usually &#8212; the context is reasonable and this is. We have a Wedge Top. <\/p>\n<p>If you have a Low 4 short, or some other reasonably high probability trade, you can simply say it\u2019s a second entry short with a breakout above this Final Flag. No matter how you look at it, it\u2019s a second entry short, 64, 67. But the signal bar is only three ticks tall. And whenever you have a really small signal bar, you say, \u201cAhh. I\u2019m going to sell one tick below 68 and I\u2019m going to put my stop one tick above 68. I\u2019m only risking five ticks. So that\u2019s about as small a risk as I can possibly get.\u201d <\/p>\n<h3>Tiny risk with good probability \u2013 really? <\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/reduce-risk.jpg\" alt=\"Trading Dice Reduce Risk\" width=\"249\" height=\"249\" class=\"alignleft size-full wp-image-61159\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/reduce-risk.jpg 249w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/11\/reduce-risk-150x150.jpg 150w\" sizes=\"auto, (max-width: 249px) 100vw, 249px\" \/>So just say that to yourself. That you have a trade with decent context, but really tiny risk. Decent context means pretty good probability, Okay, and really tiny risk. Something is wrong, and what\u2019s wrong is the probability is not what you think it is. The smaller the risk, in general, means the smaller the probability. So the short is a high probability short if you use a wide stop, a wider stop than just one tick above 68. So it\u2019s really common that, whenever you have a decent-looking setup, 68, that the market goes below 68 and triggers the short. Immediately goes above 68, hits the stops, and then turns back down again below 68. And then the trade works after it stops out the dummies. It\u2019s just a really common thing. <\/p>\n<h3>Not so <a href=\"http:\/\/www.babypips.com\/school\/undergraduate\/senior-year\/setting-stop-losses\/top-usage-mistakes.html\" target=\"_blank\" rel=\"noopener\">tight stops<\/a> can work<\/h3>\n<p>So if I\u2019m shorting below 68, I know that it\u2019s a three tick tall bar. There\u2019s probably at least a 50-50 chance that it\u2019s going to trigger the short below 68, go above 68, and then from there, maybe a 50-50 chance that it will go back below 68. So if I\u2019m shorting below 68, there\u2019s no way I\u2019m putting a stop above 68. I\u2019m going to put a stop three or four ticks above. Sometimes two or three points above, to allow room. But that\u2019s what happens whenever you have a really low risk, a small signal bar. <\/p>\n<p>You cannot put a stop one tick above, because the probability is you\u2019re going to get stopped out. So if ever you short below a small bar like 68, never put the stop one tick above 68. I would say, probably 70% chance you\u2019re going to get stopped out. If you have a stop five ticks above, four, five, six ticks above, maybe you have less than a 50-50 chance of getting stopped out. <\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Tight stops with wedge top setups BPA trading room Q&amp;A: April 1, 2016 Question: Will you explain again, with context, why selling 68 high for a scalp is a good trade, for a stop four to five ticks above. With context, when is it not a good trade? Video duration: 2min 57sec You can also [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"shadow","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-61138","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/61138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=61138"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/61138\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=61138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=61138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=61138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}