I've decided to go back to the J16 style of trading (more on that in a later blog post). Here's a long trade I took off the weekly chart. There was a minor fakey off a decent weekly horizontal level. Risk was 0.5%, with no fixed profit target, although I have marked the FTA (first trouble area) on the chart.
and here is the exit chart. As you can see, the fakey failed and took me out for a loss.
The J16 method calls for an evaluation of your trades. Now I don't think this was a bad trade to take. Sure, a minor fakey is not as good as a major one, but it was still off a good level, so it wasn't the worst one to take. I took the loss on the chin and moved onto the next one.
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