[B]Student’s Question:
[/B]
Would miss the 1st sell entry if using 15 pips below the double top line.
[B]Power Course Instructor’s Response:[/B]
Yes…
You have the right idea here. Keep in mind that many successful traders will miss entries and it is merely a part of trading.
Aside from placing entry orders, a way to time entries into a trade is by using an oscillator such as the RSI or Stochastics. When a support or resistance level that the trader has been observing is broken, an oscillator can then be checked. When the oscillator shows that momentum in the direction of the trade is favorable, the trader can enter.
For example, if Stochastics were being used in a plan to short a pair, the ideal signal would be when Stochastics broke below 80 showing that momentum was bearish.
See the chart below for an example…
