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Originally Posted by Trader02
I can definitely use help in this area. Thanks.  
See chart.
Entry was slightly below the top and STOP #1 was placed just above the top and remained there until price had gone down, then come up in the green candle just below #2.
When it then moved away from #2 further south I moved the stop to #2.
This #2 was then hit at the red arrow when Price just barely nailed it. |
okee dokee.
first things first this trade was anti trend in my book so tight stops are warranted.
Your initial stop was fine and your second stop move was also fine. However personally as it was counter trend and clearly a continuation pattern i would have had a third stop placed after the thin tall doji appeared 3 candles before you were taken out. My stop would have been just above the candle before the doji.
The length of the doji showed a clear rejection of new lows and as such was reason enough to tighten the stop.
However, in my book the earlier comments about a too early stop move were incorrect on this occasion.
hope this helps and is just my opinion for what it's worth.