For this setup I'm using fractal analysis. There are three gray shaded areas on the day chart and one magenta shaded area on the hourly chart. The Fractal Anchor represents the pattern with the strongest repetition on the daily and the hourly. The Fractal Reflections on the daily represent the sort of bars we expect to see beginning today on the daily.
On the hourly we see a repetition of the daily chart Fractal Anchor. THIS IS SIGNIFICANT, because according to how I manage fractal patters, if the smaller time frames mirrors the larger timeframes and we get multiple timeframe pattern identity, then we have a very good indication of the future will repeat the past.
I copy the bars from the pattern I expect to repeat to find the target. I use the prior interim high on the hourly chart to plot risk. But the real stop here is a picture stop. If the price violates would break the picture we expect to seen, then we have to get out immediately.
Observe the trade R, etc...
On the hourly we see a repetition of the daily chart Fractal Anchor. THIS IS SIGNIFICANT, because according to how I manage fractal patters, if the smaller time frames mirrors the larger timeframes and we get multiple timeframe pattern identity, then we have a very good indication of the future will repeat the past.
I copy the bars from the pattern I expect to repeat to find the target. I use the prior interim high on the hourly chart to plot risk. But the real stop here is a picture stop. If the price violates would break the picture we expect to seen, then we have to get out immediately.
Observe the trade R, etc...
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Risk is placed a point where the fractal pattern would cease to mirror.