In tonights review lets look at a few basics I trade by:
1) Focus is in 2 areas
A) who has control-buyers or sellers. The WHITE LINE helps determine this. Generally speaking, buyers have control above & sellers below.
If you are a very aggressive trader you can contra trade both sides of the WHITE ZONE. If you are less aggressive you want to trade in the direction of control.
B) The whole zone gives on an edge in trade placement The front of the zone is the most aggressive, the back of the zone is least aggressive. Only you can determine your risk tolerance. Where ever I enter a trade I assume my stop will need to be behind the zone. Therefore, you must plan accordingly.
I do not have a stop I recommend; though I do recommend using a stop. A stop has 2 meet 2 criteria, a-- it has to be one that will let me protect my account while b) giving me the best chance of staying in the trade the majority of the time. If you can only tolerate a 2 tick stop & the instrument you trade has a 2.5 point rotation at its least volatile point, you probably have a problem.
These are the backbones of my trading.
Sometimes I am taking trades at the front of the zone & sometimes I am taking trades middle to back. I always prefer middle to back if for no other reason than I can use a smaller stop.
For tonight's review, I would encourage you to look at the back of the zones and look at what type of stop would have kept you in the majority of the rotations back up. I could tell you but you will learn more by measuring yourself. Lots of trades here. High odds trades.