A safe way to enter a trade
After identifying the trend up or down, a safe way to enter a trade is to wait for the first horizontal continuation pattern of five minutes or more and simply do a stop order above it, if going long, or below it, if going short. Then set your initial stop loss at one and a half to twice the width of the pattern on the side opposite your order.
Livermore in “Reminiscences…” once said something like that: “admitting that I was wrong with my long automatically meant that I had a reason to short”. Maybe not exactly that (don’t remember exactly and lazy to search for an exact quote in a book ) but you got the idea.
P.S. Don’t open your full position initially.
