Analysing stocks is really difficult. I don't know how people did it in the old days (before computers). It's hellishly difficult to get something that works half-reliably for all stocks.
Edwards and Magee's book is insane - equivocates everything. Causes more confusion than anything else.
good points and sound advice for others to take note.
with regards to the actual stop loss only testing will give the answer. yes getting the direction right is easier than timing the entry and setting the profit target, some markets lend themselves better to chart structure targets than a R ratio. In a trend and pullback the first target after entry has to be the prior swing high (up trend) which some call the 'first trouble area' and is often around 2 x the stop placed just behind the base of the pullback. If sellers are serious this is where they will strike a second time to force a reversal.
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