The next important thing we need to establish is where to place your protective stop loss. By doing this we accomplish two things: first, we make sure that we accumulate profits and secondly, if the markets reverse we make sure we’re stopped at BE and don’t lose any money. Note: After TP1 was reached, move your SL at BE. With the, we’re trading in the direction of the trend so the expectation is to see price moving higher and eventually to retest the upper Pitchfork limits. We only take partial profits on the median line because we also want to maximize our profits and give the market a chance to retest the upper Pitchfork resistance trendline. Our mantra is always “ Keep it Simple, Stupid,” and in this regard, since the core principle of Andrews Pitchfork trendline is that price tends to gravitate towards the median line, that’s the logical place to take some profits off the table.
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