Oct charts, page-13

Good question Milesy, .......... actually a very good question which I'll try and answer remembering I'm in no position to and would't advise anyone.
My methodology and rules demand a stop loss based on my appetite for risk which is a dollar amount not a level or pattern, why, simply because I can't argue with myself and try and interpret the level or pattern another way, money is money end of story.

Appetite for risk is my loss tolerance and everyone will have a different figure, the deep pocket guy will comfortable lose $10,000, another market participant will shudder at a $100 loss but take it and move on. I've an amount (loss) where I'll sell if I'm wrong regardless of anything else.
I have found in the past that if price takes( gaps etc,) me below my loss comfort level too far then I'm frozen and can't take the loss because it's too much, and my thinking is that if I don't sell my loss isn't realized.
Preservation of my trading capital is paramount.

I hope this helps but it's my opinion only and others are welcome to disagree.

Cheers
Fid
Out