A time stop's starting point should be calculated from the engulfing reversal and/or the lowest low/highest high before the engulfing reversal. That is the best way to do it. No second guessing and makes for easy backtesting. I prefer engulfing reversal. That is if you don't have the gut instinct to just do it by feel... Which is the better way IMO.
=============== R-Trader/Trender thanks. Problem with ''gut feel'', that really doesnt help without much experience.And there are a few markets, in which i have done well, for many years ; but my'' gut feel'' tries to get me out weeks or months ahead of the trend end. Moving averages, quarterly candle charts[meaning 30 or 40 candles per 10 years/+.......]. are much moore helpful to me than any kind of ''gut feel'' Lots less comissions/slippage help much, also......................... Wisdom is profitable to direct.