ROULETTE STEP 3
Determine the probability of the market not going sufficiently far in the
direction of your stop.
Essentially everything stated in the previous applies here, only for the
converse reasons. forex sato
Do your analysis to determine likely resistance/support levels. Ideally the
location of your stop should be safely behind those levels.
Again, part of the reason for finding the Usual Maximums with the ATR
indicator is to determine the likelihood of a rogue day hitting your stop. If
your stop is within the range of say the usual daily maximum then there is a
greater chance that “market noise” fluctuations could hit your stop.
Remember that the best trades (for the Roulette method) are not only when
there are ample reasons that the market will move in your desired direction,
but also when there are ample reasons that the market won’t move in the direction of your stop.
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