How to combine the Stop Loss indicator with the principles of Chart ReadingOleg Alexandrov
Consider the example of AUDJPY, M5
1) At the beginning of the European session in this market, the number of buyers in profit was too high. The market was not created in order to provide opportunities for quick easy money, so at least a downward pullback should be expected.
2) The stop loss indicator also speaks in favor of the pullback idea. It shows the cluster of protective orders of sellers.
Given the two above factors, level (2) can be used as a guideline to start the rollback. Where can I get a signal to enter the deal?
An analysis of Supply and Demand will help to find the right moment to open the short.
3) There is a change in market sentiment. After an exhausting wave upwards on drying volumes, a bearish candle appears with an increase in volume. This is a sign that sales pressure has begun.
Get in shorts and move your protective stop lower and lower (4), increasing your success intraday. At some point you will be knocked out, however, you will get profit. The profit is most likely not to be big, but such opportunities open every day.
Yes, You Can Become a Professional Chart Reader
To build success in any business, you should rely on things that really work.
In Chart Reading Method, they are three: The Law of Inequality, The Law of Supply & Demand, The Law of Effort & Result.
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