A high wave candle occurs especially near the release of important economic data so if you have very tight stop losses in place, you would probably want to be aware and track this important times so as to either reduce your position and remove your stop loss or just remove the stop loss (if you can handle the capital risk).
From experience, never trade anything that you feel uncomfortable about losing as you tend to trade with emotion and that I believe is a sure way to lose money.
I have probably mentioned this before but there are some trades you just can't take because the risk is too high. If you have identified a trading position like a higher swing bottom, you can put your stop loss several pips below the previous bottom. That would be your capital at risk. Divide that on the $ you are willing to put at risk on a single trade and that would be the number of contracts you can put in. If you want to test the waters, use less contracts initially and pyramid up on second confirmation.
I have sometimes just put a single contract trade without even looking at the pattern to identify what is happening... you tend to be more aware of the patterns forming when you have a position (even a tiny one).
Nice trading setups today.. trust everyone is appropriately satisfied with the direction. :)
