volpri, Thanks for the response and I agree with you. My SL was the orange arrow below the breakout level, so that even if a PB occured, the chances are buyers will enter on the breakout support level. That did not happen and I was stopped out. For such a large uncommon BO bar like that one, placing a SL below that bar as you stated does make logical sense and appropriate risk, so i agree. But I do see your point and like your statement regarding "If the logical initial risk is too big for my palate then I will skip the trade and wait for " Using your SL locations, i would have have skipped the trade and wait for another opportunity. Good point and I appreciate it.
a bo out of a range should not be traded....you could even look to fade it, if a good setup presents itself . this what i mean: over concentration on stop placement when the reason for taking the trade is in it self flawed. many traders think buying above a strong bear bar is a good strategy.....i used to think this but i realised after a lot of heart burn that this is another example of a flawed thinking
I think you mean buying above a strong bull bar, right? The trade entry was good, stop loss wrong place, and too much risk.
no you could buy above a bear bar....in a strong up move, see yellow arrows in the chart do not think the trade entry was good... it was a BO from a big trading range that means the market spent a lot of time thinking about which direction to go....which is never good...if the market itself needs to think so long, if it self is not sure where to go,how can you be? you need to understand and you need to read in between the chart...in between the lines do not think: ok i am not sure but the stop will save me.. the stop is overheads and too much over heads is bad for business
do you have what happened later? i am almost certain that both the red dots would have been broken:the market would go below them and then, reverse probably take out the high
padutrader, Good question. This is what happen later. Volpri recommended stop loss locations was not touched. Placing the stop loss below the big breakout bar was an optimum location for this trade.
no course can teach you how to trade....anymore than a road map will get you to the destination.... trading is just a....wonderland you wander through it and enjoy it
volpri, Question for you. Do you consider risk vs reward on every trade? For example, there are times where I observe my risk is 25 ticks but my potential profit target is 8 ticks. My risk and reward varies day to day.