Overnight trading is surpassing the 8ema. This is introducing risk. Want to see if we can sharpen my pencil on the Stop Loss.
Looked at the range of the most current little down leg and calculated the 50% and 61.8% retracement levels. Marked them on the chart. 61.8% is 27.14. We moved the Stop Loss down to just over the high of the candle that has the lowest high which is higher than the 61.8% level (its the big red one) at 27.36. This is also just over the 20 ema. It would also be a major breach of the down angled trend line connecting the tops of the highs of the last 4 candles forming this little down leg.
By moving down the Stop Loss from 27.87 to 27.36, we save 27.87-27.36=.51*$600=$306 if the stop is hit. Its a reasonable Stop Loss level, not an emotional desire to lose less money. If price breaks the down trend and significantly surpasses the 61.8% retracement, then that's a sign this trade is in serious doubt.
No comments:
Post a Comment