Hello, I have a doubt about Trigger to enter a position after a setup.
I know candle formations are classical Triggers as they provide a nice turning signal and usually a nice R:R ratio. But unfortunatelly they are very likely to be reached by whipsaws. Even the comfirmed ones.
So, I’d like to ask:
On a trending scenario you will look for Retracements for opening orders. In many cases these Retracements form a short-term counter-trend Trendline. What if we enter the trade right after this Trendline be broken?
This kind of Trigger will allow us to have two short-term protections for our Stop-Loss:
a) The Broken Trendline;
b) The lowest point of the Retracement.
While Candlestick will provide us only one short-term protection for our Stop-Loss and still will need to break the Trendline of the Retracement:
a) The lowest point of the Retracement.
Please see the attachments.
This is the idea, but I really would like to hear from experienced traders what they think about it.