D in downtrend tested S/R from below and held with a significant sell-off.
240 reached a support area and I was looking for a test up to short into.
60 got to the MAs and was holding
5 shows my short entry at 25. It was messy but I saw a H&S pattern and entered when the 6pm low was broken.
60 shows I targeted the trap box at the lows, my 2R target was hit 4 hours later.
Summary: I took a -1R loss despite a perfect read. The consolidation was messy and I expected it to break downside at the point I entered. I should expect I will sometimes enter in consolidations that don't break until later. Main thing is my view is correct and I believe the target is achievable. I should not use tight (hitable) stops when things are choppy - I'm just asking to get pipped out. The last 2 stopouts have been barely tagged and is a result from trying to reduce risk and to increase the Reward multiples. However, smaller stops can also make it unlikely I'll reach my target because the noise can snag them. So it's not just about having a large R multiple but about having the right mix of good win percentage plus an appropriate Risk:Reward. If I need a 40 pips stop and that means I can only achieve a 2R win then I cannot use anything smaller than 40 pips.


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