'Market and Human' Psychology perspectives with tips on how to avoid common mistakes by 
I am often asked where support or resistance lies. Here’s a way of targeting those areas to facilitate choosing a stop-loss level.
On the 4 hour chart below you will see where a candle pierced the Bollinger band but failed to close above it and it also left a wick that was longer than the body. This presents the perfect opportunity to go short against the high of that wick. The other pattern that provides a great opportunity is the Tweezer.
So when I think a turn is due I use this method to enter my trades and use the extreme of the pattern as my stop. There are times this fails, however the percentage is better that 50%.
This set-up happened just a few days ago on the GBP/USD.
Hi,
I have two questions
1)I hears that, pair of Gbp retrace usually 50% of its move?
2)If we toke short 38% ret. expect for continuation, if dose move above 38% in a same day for any reason (news, data,etc), where we should place stop that we can safe in two conditions i)Trend is down and market start rising,or forming bottom etc.ii)Trend is up and shorter trend is down like above example if market could not break previous support for continuation or start rising with minor drop.
Hi stmarket
Strategies and rules for trading are important. If you like the one you describe then use it. My experience is the GBP/USD retraces at all different levels especially .382 & .618
My technical strategy for stop loss is much simpler than This. I look for good reversal candle patterns and set my stop at its extreme. This works for me as I am either right or dead wrong. What I really dislike is when I am stopped out by a few pips. So pattern extremes are best for me.
Cheers