Today I want to go over a bracket trade (two bracketing price) giving us the option to shoot for extended targets.
One thing that we must remember are the rules of our patterns. When bracketing trades like this, its important that we know what validates a pattern and what violates the patterns, that way you are not taking extended targets to a pattern that is no longer valid.
If you are not sure, then have your rules right next to you on your trading desk. That way, whenever you are in doubt you could just look at your plan and know exactly what you should do. If you do not have a written our plan with specific black and white rules explaining why you should get in the market, than I would stop what I am doing and work on that immediately.
As you guys know, our stops and targets go in the same place, the 1.205 EXT of AX for stops and the 38.2/61.8 RET of AD for our targets.
Like always if you have any questions, comment below, follow us on social media !
Daniel Garnier - Founder of The Alcove Fx
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