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In the STC example, I am selling the EMA PB (red star) and using the correct stop @top of leg.
- How do we know when to use the 1-2 point stop vs the correct stop @top of leg?
- Is anyone 60% confident of reaching a 1x move with this wide of a stop?
Thanks! 🍟 🍷
Hey,
I would probably use the stop above the signal bar in this case. The signal bar is good and the trend is quite possibly ending. So if you use the signal bar stop and go for a scalp you would be safer and in this case capture a win. I think this is in line what Al is saying in the later videos (33) about protective stops. As I understand it, you can always put your stop above/below a good signal bar. Its a matter of preference and depends on if you want to scale in later.
Edit: if the signal bar is really small, you would probably have to use a different stop. But thats not the case here imo.
what a great example, and the reason why exit early 4 to 8 ticks above
Those 4-8 ticks are 5 points right now right?
The scalp size (5min ES)
Good point. In the book "Reading Price Action Charts Bar by bar" there is a mention of using 2pt money stop if daily average is no more then 15pts (p.84). But may be same concept can applied with prices are in the pullback/range phase?
