If a reverse bar (a reverse bar will be at a support/resistance level) a over 25 pips do NOT take the trade. The only exception would be at news time. Always wait until the reverse bar is completed before entering. Do not try to guess how the price bar will complete and enter prematurely.
If you are entering long after a double bottom, place your stop 10 pips under the low of the entry point. If you enter short after a double top, place your stop 10 pips above the high of your entry point.
When you have pinpointed the 3 bar stop, place your stop 5 pips under the low of the third bar for a bullish 3 bar stop. For a bearish 3 bar stop you would place the stop 5 pips over the high of the third bar.
When you have entered a trade and volatility suddenly picks up, the price bars will get noticeably larger. When the bars are 15 pips or larger you can move the trailing stop 5 pips beyond the current bar after the bar has completed. These bars do not last long, rarely over 30 minutes. They are common at news times. When volatility slows down you will be stopped out with a nice profit.
The 50 pip occurrence usually happens at least once a day and no more than three times a day. If the market has reached the 50 pip price objective then exit.
If you are in a trade and the price stalls for 60 minutes or more, then exit your trade with a stall stop.
