Ankitgarg, I posted a reply eariler, and something happened, because it never got transmitted.
Oh well, the timing is even better. The reason I said that is this analysis does not have the pinpoint accuracy that I have been used to, so I can now address the issues with it.
First of all, I drew the TL lines off the 4-hour chart rather than the daily chart, and you will see it takes on a bit of a different look. All it did on the daily was hit the bottom of the lower level TL. It went sideways off the TL today, and then broke down right back to the lower level TL. This enabled it to not only hit the LL TL again, but clip the WS3 (Sorry for the diversion from the thread's main subject.) at .9329. The thing that gets me excited about this position is not all that evidence, but how low it is flying under the cloud. That tells me recovery is in store. This is a time when The Move has delayed, but it does not mean it is going to happen.
Stops are more of a personal thing, except there has to be a methodological approach in using them. You may be the conservative type and want to keep them close, so you might set in at the most recent low.OTOH, the latest dip on the weekly is .9287, so somewhere under that point could be good
The one thing you don't want to do with stops is to say, "I want my stop to be x amount of pips, and that is where I'm going to set it. Most likely, your stop will be hit, so it did you no good to place the trade. This is because unless it is placed behind a key support, it could spike you out.
This is why when someone asks about stops, you almost have to be vague in answering it. I'm not going to tell you to set your stops where mine are. I have an aggressive style, but high conservative in my margining. I don't think nothing of a 200-pip stop. Yet 99% of my trades (literally) I have to manually take my trade out or they hit my TP.
Many things have to be addressed with regards to stops.
I will say, "Be ready!" It is flying too low below the cloud. To add validity to that statement, take a ruler that measures cm's. Measure the current distance from the candle to the cloud. Look at any market, whether it be this or any other. Tell me what the odds are of a candle ranging this far from the cloud. Add to the OS condition of the stochastics, hit "Buy", be patient, and let the pips roll. I'm saying that in the middle of having 4 losing trades currently up, which is unusual for me.
This is what you are talking about. But how do you initiate a Long trade on this? I mean to ask when and where? And where do you place your stops?