It is been observed on the daily chart that the price action forms a Bearish Head and Shoulder pattern where sellers are active in the market and put much pressure on buyers to push prices down. Now it shall further move down as the pattern indicates.
For these type of trades, may I ask your strategy for SL? Do you put one outside the structure for 1:1RR or just above the previous high? If later, the structure retraces to take down the SL and starts to go down, would you re-enter?
@rakefree, I took a stoploss at 1920 as if the price action crosses and closes above that price then it shall invalidate the pattern. I would only close my trade if there is a bullish close above the marked stoploss as that will indicate buyers invalidating pattern and pushing prices up again. I appreciate your curiosity, Regards