Recommended settings for stop-loss trades
It is recommended to use a 1-hour chart
The market trend is the 1-hour chart
Since the market trend is the 1-hour chart
you "catch" it with a 15-minute chart, etc.
Understanding the integration of that trend is simply the "Dow Theory"
Trade timing is most effective when you follow the position
The loss setting is the break point from the follow position = a smaller loss position
If you trade the break as the trade timing, the stop loss is the follow position
Why is the stop loss placed there? Because the idea is to avoid reversal
The underlying logic is the same as a swing strategy; both are based on "no reversal"
In other words, it is the logic to maximize profits
As a principle, enter with the Dow Theory's N shape
The reason is because it is the simplest
Also, basically
"Whether you enter with an M-shape or a flag pattern, you reflect the entire N-shape movement"
In other words, "N-shape is effective in any market pattern"
Also,
You can enter N-shape with a follow, but
M-shape or flag pattern can be entered at a break
In other words, the trade timing you should hold is
In alignment with Dow Theory
If it's an N-shape, enter on the follow
If it's an M-shape or flag pattern, enter on the break
That's all you have to do
Why is that
Because you can enter on the follow for an N-shape
It is reflected in past market patterns and remains as a form
That is, it is effective
M-shape and flag patterns do not retrace once formed
They are reflected in past market patterns and remain as a form
That is, it is effective
The market is simply that
That is why the Dow Theory is important
If you know only the N-shape, M-shape, and flag pattern, you can understand the market pattern
You can also gauge trends with support/resistance
Trade timing is simply entering on a follow or a break
The market is "simple"
Everything is about estimating those timings
Since a stop loss is about pursuing profit
"Divide a single shot into two
And set the profit-taking levels as a temporary high and the high until the trend ends
And that's it
Stop-loss trading has no path other than basing on Dow Theory
