Here's another 4 hour demand line. I noticed price down at the bottom of this zone (near the bottom of the wick) and decided to take a flyer and placed a market buy order at 13525 with an intent to sell at the next highest supply zone (same zone as previous posts). I decided to take some extra risk and place the stop loss lower than I usually would (below the wick of the candle in the base). This is because the percentage loss of the stop loss with the extra risk is just above 3%.
This is how I stratify stop loss risk percentages:
This is how I stratify stop loss risk percentages:
- <2% : PERFECT
- 2% < S/L < 3% : standard
- 3% < S/L < 5% : only if high reward
- 5% < S/L < 7% : for highest reward, trying to stay in a position
- >7% : usually not placed, occasionally used for extremely high reward situations
