Saturday, May 20, 2023 11:10:00 AM
Demand zone stop loss hunting.
This is where a demand zone gets broken below just by a few points and then moves back up above the zone.
You still want to look for a reversal pattern such as the ABC move with a retest and then a break out.
A closer look at the set up that formed the ABC pattern with a retest. The only difference is that the B point didn't get tested, but a consolidation area did.
This trade set up did have a 5 point risk and would have had you second guessing your trade, but you can't pick and choose your trade based on which ones you think you will win at, you need to have rules in place and if the rules are followed for the buy trigger you should take it and follow the rules for the stop loss and the profit targets.
This is where a demand zone gets broken below just by a few points and then moves back up above the zone.
You still want to look for a reversal pattern such as the ABC move with a retest and then a break out.
A closer look at the set up that formed the ABC pattern with a retest. The only difference is that the B point didn't get tested, but a consolidation area did.
This trade set up did have a 5 point risk and would have had you second guessing your trade, but you can't pick and choose your trade based on which ones you think you will win at, you need to have rules in place and if the rules are followed for the buy trigger you should take it and follow the rules for the stop loss and the profit targets.
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