Sometimes, as we attempt to stalk a trade, it subtly migrates to another timeframe. This is happening to the trade that we were looking for on the FKLI last week. Although it has reached a minor resistance, the swing size makes it now appropriate for the trigger to be taken on the four-hourly chart.
For those who have not followed it, here is the previous post, where you can begin following the cookie trail to earlier posts:
In this case, the trade setup has already formed. We will only take one swipe at this setup – when price falls to 1762, one point below the low of the previous candle. The stop loss would be at 1774, above the high. If this occurs, we will likely be riding a small move down, so the trade will have to be defensive.
Head Trader Consultant