/biz/ - Business & Finance

>>53759746
>It has to be a significant distance from the entry
No it doesn't, when people are buying strong dips there's usually no bullish structure to speak of. In your first case there's usually a bull breakout, pullback, then a second breakout. So the logical place for stops is below either the trading range from the pullback, or below the bull leg.
On the other hand let's say there's a bear trend and a breakout to a new low. You would buy with a tight stop hoping this is the major trend reversal upwards. It's a low probability bet with great risk reward (tight stop, possible major reversal). And unless there's previous support levels you know of then logically there would be no support structure to put your stop, you're at the bottom of a red candlestick at a new low. All you can do is pick a number of points or pips that seems right.

>>53742192
Kek I called him out on that and he insists there was a "santa rally" because January pumped. But it only recovered December losses.