I woke up this morning to find someone has vandalized my beautifully bullish March Soybean Oil chart! This chart image is from 6am ET.
I'm tempted to lower my stop because if its hit, price will immediately reverse and start back up. But that's just an emotional reaction, although not without past experience where that's exactly what happened. Price could drop much further, even though I don't think it will. The smart trade is to leave the stop in place, and if its hit, and price reverses, then drop down to a shorter time frame and asses the chart whether and where to get back in a long position.
A source of confidence price won't make it down to the stop is that the open of this down candle (31.00) is lower than the close of the previous candle (31.03), which means a close the current candle below the open of the previous candle would not be a valid candle pattern.
So, I'm going to leave my stop loss unchanged and expect more civil people will start buying at 9:30am ET and keep buying all day.
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