Now, whats going on with that pips first drawing? 
This is an improvement to the
UM.
Procedure :
We enter long, using the
5 minute KC chart to get a good entry.
Part of this action is that we set a stop loss 10 pips away. (correct direction of course!!
)
If the price action goes against us - a retrace first trade - then we will hit the stop loss and lose
1 amount of 10 pips.
But if the price action is in our favour, then..........
after gaining 5 pips we :
1) enter a 2nd amount.
2) remove our 10 pips stop loss.
3) place a
2 amount or double stop loss at the
black horizontal line (the base or entry point).
I can now see that I will need a clear diagram to help explain this - I will do so in the next post.
If the price action now reverses, we will break even with our 1st amount and lose 5 pips with our 2nd amount.
If the price action continues to go in our favour, we move the double stop loss 5 pips every time the price action moves 5 pips.
Eventually, the price action
will reverse (point E in the diagram) and hit the double stop loss at point D.
That is the end of it.
Next post - diagram for clarity.