The translated HTML content is: Recommended settings for stop-loss trading
The 1-hour chart is recommended
The market trend is on the 1-hour chart
Because the market trend is on the 1-hour chart
you should “capture” or take positions on the 15-minute chart or similar in that trend
Understanding how to embed that trend is what “Dow Theory” is
Trade timing is best when you are in the follow position
Set your loss from the follow position to the breakout level = a small loss level
If you trade the breakout timing, the stop loss should be at the follow position
The reason for placing it at that stop loss is the idea of “not going against you”
The logic itself is the same as a turnable logic; both are based on “not going against you”
In other words, it is a logic to maximize profits
As a rule, enter with Dow Theory’s N shape
The reason is that it’s the simplest
Also, basically
whether you enter with an M shape or a flag pattern, you reflect the entire N-shape movement
In short, “N-shape works for any market pattern”
Also,
N-shape can be entered in a follow
M-shape or flag pattern can be entered on a breakout
Therefore, the trade timing you should hold is
In line with Dow Theory
Enter on a follow for N-shape
Enter on a breakout for M-shape or a flag
That’s all there is to it
The reason is
You can enter on a follow with the N-shape
Because past market patterns have reflected this and remained as a form
“Thus it is effective”
M-shape and flag patterns do not revert once their form is formed
That form has remained as a past market pattern
“Thus it is effective”
The market is essentially that simple
That is why Dow Theory is important
If you memorize only the N-shape, M-shape, and flag patterns
You can also understand trends with support and resistance
And trade timing is simply entering by follow or break
The market is “simple”
All that matters is measuring those timings
Since stop losses are about pursuing profits
“Split one shot into two parts”
And set the take-profit at a temporary high and at the high until the trend ends
That’s all
Stop-loss trading can only be based on Dow Theory
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