For example, if the market is moving an average of 2 points every five minutes, a trader might consider placing his stop outside a 2-point range. If the trader chooses a 1-point stop when the market is moving an average of 2 points, he is probably going to be stopped out of the trade.
- 4 Interpreting Charts: Translation 101
- from How You Can Trade Like a Pro: Breaking into Options, Futures, Stocks, and ETFs
- Publisher: McGraw-Hill
- Released: March 2014
I don't understand this now, but hopefully later.