This document discusses calculating a 45 pip price projection for a trade based on two matching lows below a supply line. It explains that the candle not touching the supply line is chosen because price maintaining the same low as the supply tightens signals consolidation and an expected reversal. It then notes that for trades under 50 pips, like this 45 pip projection, the stop loss method uses 50% of the projection, so here the 23 pip stop loss is calculated as half of the 45 pip projection rounded up.
This document discusses calculating a 45 pip price projection for a trade based on two matching lows below a supply line. It explains that the candle not touching the supply line is chosen because price maintaining the same low as the supply tightens signals consolidation and an expected reversal. It then notes that for trades under 50 pips, like this 45 pip projection, the stop loss method uses 50% of the projection, so here the 23 pip stop loss is calculated as half of the 45 pip projection rounded up.
This document discusses calculating a 45 pip price projection for a trade based on two matching lows below a supply line. It explains that the candle not touching the supply line is chosen because price maintaining the same low as the supply tightens signals consolidation and an expected reversal. It then notes that for trades under 50 pips, like this 45 pip projection, the stop loss method uses 50% of the projection, so here the 23 pip stop loss is calculated as half of the 45 pip projection rounded up.
In this example, a 45 pip price projection has been
calculated. When there are two matching lows
below the supply line as in this instance, I would choose the candle that is not touching the supply line. Why, because price maintaining the same low as the supply line tightens signifying consolidation, price cant break the low so a reversal is expected.
In this trade a price projection of 45 pips has
been calculated, thus it falls into the stop loss method for trades with less than 50 pip price projection. You would take 50% of the price projection to calculate your stop. In this case it will be 22.5 rounding up creating a 23 pip stop loss on a 45 pip trade
45 Years In Wall Street (Rediscovered Books): A Review of the 1937 Panic and 1942 Panic, 1946 Bull Market with New Time Rules and Percentage Rules with Charts for Determining the Trend on Stocks