Copper broke below the triangle support line triggering entry on the sell strategy I discussed in a post last Friday 1 March.
No warm inner glow of anticipation from a big initial move here. At this stage, the market is hanging around the support line.
Still, it can be just as dangerous to decide you don't like a setup because it doesn't start with a bang as it can be to fall in love with one and double up because it does. Consistency and sticking with the strategy is the best approach, I find.
I discussed approaches to trade entry and a profit objective in Friday's post outlining the setup
I've outlined one strategy for placing the initial stop loss on the chart below. This technique looks for a minor resistance level inside the body of the triangle. You can draw a horizontal line through minor trend peaks and resistances inside the triangle or sometimes, simply put it through a level where you find a number of candle highs and lows at about the same price.
This is the dashed green line on the chart. A price filter is applied and the actual stop loss is set where the red line is. (Hint: You can show or hide your order levels on Tracker charts via the icon on with 2 small arrows on the right hand side of the lower toolbar)
The idea here is to allow reasonable tolerance for a retest rally back into the triangle. However, a break above the resistance indicates potential strength and increased chance of failure with a move back above the triangle resistance and a new uptrend developing.
This approach results in a closer initial stop than the traditional approach of placing it on the other side of the triangle resistance
Using the stop entry and profit target discussed on Friday and this approach to the initial stop, the outline of this setup as it currently stands is shown on the order confirmation below.
With high pay off strategies like this it's common to use techniques to move the stop lower as the trade unfolds
If we get that far, I'll post a follow up discussion on ideas for trailing the stop