Dear Traders,

If you took this bullish trade then lets look at the charts now one day later.

Whenever you trade a fib retracement then you just concentrate on the entry but do not wait for confirmation of price.

If you are right then you enter on a good price but without confirmation of your lagging indicators like the MACD or Stochastik.

Today I want to share where you might place your stop loss. As you can see I placed mine below the 62% Fib retracement.

If price falls further then I want to take my loss quickly. If this happens then my bullish trade idea has been invalidated and I want to be out of the market.

I also highlighted that yesterdays candle is a hammer which is also known as a reversal candlestick pattern.

If price reverses then it should do it between the 38 to 62% fib levels.

I do prefer to let profits run having no fixed target therefore trailing my stop loss with PSAR.

BEST OF PIPS