question 2, is a trade I did myself (forgot to mention it at that time here) I got long at the arrow at 10, which I still think is right, but got stopped out at 2 (which it just hit once). Why is wrong in putting my stop so close (should I have put it bleow 1.5600 ?) and or should I have reentered later (when stopped out) when we broke the horizontal line and pulled back just once ?
Very simple. Where is closest resistance (previous support and pt2 of 123 reversal) on that chart? Well, price bounced off it...
As for qn 2 you almost answered yourself with your chart... Going long just UNDER PP or any other S/R is generally a bad idea. Price is apt to bounce (at least short-term) and can stop you out.
Also yes, price is often attracted to strong areas (round numbers including of course). So better place stop BELOW them (for a long). It's like full point in stocks - respected area usually.
ok, pretty much understood 2, although hadn't payed attention to pivot (someting to remember in the future) but still having problems with the first one, wasn't point 2, the point where you did take the short at 78 ?
It was but of smaller pattern. And I'm talking about bigger 123 completed... Actually even not counting 123s bounce off S/R is bounce. Finished for today... Cya tomorrow!
thanks for the help, definitely need more screentime to see more ... have a good night's sleep and cya tomorrow
This pattern happens all the time in the Eur. It's a .786 ret of a bottom or top. Our bottom was confirmed by the candle where we bounced off 5600. Then price drifted back down to a .786 ret level of that swing. We actually tested the .786 level again for a double bottom and went up from there. Further confirmation was the bullish hammer on the 15min. Your entry was a tad early but still good. I placed my stop below the 5596 which is what the low was. You'll also notice that price just bounced off the support TL which is drawn from the low today and that .786 ret - you can see if clear on a 5min chart.
finally starting to see things the way I should see them (normally not like that, but here I was pretty very much slow, only explanation I got was I read some things about vic's setups, but not really well explained on a website ages ago, and misunderstood some things, now finally clear with the book). Guess I will need to take another day out next weekend to revisit all the posts again