Reasonable, safe and effective stop loss placement for Waves
Hi fellows, In this educational post, You will learn where your stop loss is reasonable, safe and most effective and increase the rate of success. Stop placement is a professional skill. Trading without limiting losses is highly dangerous. When it comes to trading on waves and classical chart patterns then your stop loss should be there where it is safe and secure. When a trend starts to appear and set the direction of that particular asset then you can use that place for stop loss. Normally we call that place impulse generation point and we call this technique putting stop loss behind the impulse. I will post couple of examples for better understanding. If you have any question regarding this then please you can post in the comment area i will try my best to answer of your questions.Thanks fellows.
Komen:
Here we got the 1st simple example for understanding.
Komen:
I think some of you fellows do remember this daily and 15 minute post. If you do then this is gonna be easy for you to understand.
Komen:
Here we got another example fellows.
You fellows can see the impulse clearly on this chart
Stop behind the impulse and price never violated that impulse
You fellows can see the impulse clearly on this chart
Stop behind the impulse and price never violated that impulse
Komen:
Just look at the recent example fellows.
I was anticipating the TCP and it has completed
Entry from top of the channel and stop behind the impulse
I was anticipating the TCP and it has completed
Entry from top of the channel and stop behind the impulse
For Training Course Visit:
Website: http://www.techtradingacademy.com
Youtube: https://youtu.be/nZSYWsVeLkM
Twitter: https://twitter.com/Wave__Trader
Facebook: https://goo.gl/h1zcm3
Instagram: https://goo.gl/LSauix
Telegram: https://t.me/Wavetraders
Website: http://www.techtradingacademy.com
Youtube: https://youtu.be/nZSYWsVeLkM
Twitter: https://twitter.com/Wave__Trader
Facebook: https://goo.gl/h1zcm3
Instagram: https://goo.gl/LSauix
Telegram: https://t.me/Wavetraders
Nice work.
But i think the stop below the impulse would be too wide when succeeding pullback is shallow and entry is taken on break of downward sloping tend line. The Problem worsens when impulse is very strong.
Will you suggest any alternate plan?
But i think the stop below the impulse would be too wide when succeeding pullback is shallow and entry is taken on break of downward sloping tend line. The Problem worsens when impulse is very strong.
Will you suggest any alternate plan?
Balas
@Bravetotrade, yup if impulse is strong you can look for TCP on lower time frame and can put stop behind that rather than using the wider impulse.
Balas
hey, one question on this: the shown stoploss scenarios seem to be most likely a 1:1 risk reward - but the stops are that save so you lose only in worst case scenarios?
do you quit your trade before the next contination pattern or do you hold em for several impulsive waves?
thanx a lot !
and great analysis as always thanx for sharing.
do you quit your trade before the next contination pattern or do you hold em for several impulsive waves?
thanx a lot !
and great analysis as always thanx for sharing.
Balas