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The mini-gap to yesterday - price falling underneath 9600 was made in the first 30 minutes.
It seems unlikely to see this again - only if the long is really turning.
Therefore a 10 point stop is ok.
The good thing about the DAX is that it is asymmetric in the way it moves. If you get the direction right the noise part of the daily range is small - about 20% of it (usually .. more at the moment obv).
The GFIs1 method (if I may say so) is all about letting the noise out of the morning move and then letting the overall trend , or weekday characteristic, take over.
10 points on the DAX is of course very very tight indeed. There are 1 minute pullbacks bigger than that. I have a 10 points sort of "standard stop" and I can tell you, I get belted a lot if I am not very stingy with my entries.
Using the not very scientific method of just "casting my mind back" on a year worth of trades, on the entry side, the GFIs1 trades work well when the stop is below the D-Low or above the D-High. This is of course consistent with a lot of other methods of price action watching.
Whatever your entry and exit method, be aware of getting slapped around in the noise.
If the signal is strong: you may put a 10 point stop because the reversal at 09:30 is often seen.. so the stop is
only decoration anyway.
If the signal is thin (as we had here): you better put a tight stop - here 10 points again - to protect your capital.
When the reversal does not come - it is important to let not 30 points of a normal stop on the table.
As I am not moving stops during a trade this is the moment of careful adjusting the stop BEFORE entering.
We see here that the 10 point stop can be decoration or prevention - on a same trade.
Sometimes a stop is hit - this is to prevent from desaster and to protect the investment.
Now the week develops and on Wednesday the normal short is foreseen.
Thanks for following.