Looking at examples of both bullish and
bearish setups in gold we can see that options offer a trader superior risk management and better reward to risk ratios.
Looking at examples of both bullish and
bearish setups in gold we can see that options offer a trader superior risk management.
Not exact matches
In the chart below, we didn't have this issue; we had a nice large
bearish pin bar protruding from the trading range resistance, so the best placement for the stop loss on that
setup is obviously just above the pin bar high.
BTC, which has been clearly showing the way for the market
in the past week, took the driving seat today as well, and the coin remains
in a
bearish long - term
setup, following the recent stellar run - up.
In the chart below, we didn't have this issue; we had a nice large
bearish pin bar protruding from the trading range resistance, so the best placement for the stop loss on that
setup is obviously just above the pin bar high.
In that case, do not take
bearish trading
setups, or at least delay your
bearish entries.
Even a long - tailed
bearish double pin bar
setup like we see below probably would have been a loss or breakeven at best, as we can see
in the chart below.
A long Hikkake
setup is
in place when the
bearish break - out fails.
A test of the lows is still
in the cards given the
bearish short - term
setup, but the
bearish momentum is not strong from a long - term perspective, and the long - term buy signal is still justified.