2.25.23 This is probably a good video to look at... not just because it's oil and oil does the kinds of things that happen here... but it's about how the market really has to set up for trades before you take a trade... and it would have been very easy to get in trouble with this market even if you have small stops... because it was probably going to hit your stop if you were a buyer or a seller. The market simply wasn't at the level it needed to be until it had one more bear flag which is the right trade location for a long trade. This would have been over a $2,000 trade if you had waited for the market to come down to the support area and then take the trade. I would guess most beginning traders don't really think about how important it is to not just only figure out the stop... but also the realistic target. The only way you could have had a $2,600 target and a very small stop in a setup like this is to have a very precise support area and then the distance for the market to take it to the sellers. If you're good at trade location and reversal patterns this will tremendously change how you determine trade location add work out the stop and the target.
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