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P8 and P9 is Same chart,different entry. BUT why Actual Risk(Stop Position) is different?
Why P8 not use MHL? In other words, why can't P9 use the Point of P8 as the Stop Point of Actual Risk？
Same chart,different entry. BUT why Actual Risk(Stop Position) is different?
The actual risk is different because they're different entries and the market moved against the entries to different degrees. On slide 8, the initial stop isn't shown on the chart but it could have been placed below the signal bar since this was a H3 bull flag and if the premise of a wedge bull flag is intact then this low shouldn't be taken out. Additionally there was potential for the 4 bar bear micro channel to lead to another leg down so using a tighter stop to protect against that is reasonable also. Alternatively, the initial stop shown on slide 9 could have been used or a wider initial stop could have been placed below the whole bull leg.
why can't P9 use the Point of P8 as the Stop Point of Actual Risk？
The reason that H2 entry can't use that point for the initial stop to begin with is because that price action isn't known yet. We're looking at a completed chart, but in real time the bars on the left came before the bars on the right. On any position, the entry comes before the actual risk is known and so the stop that needs to be used is based on price action (or some other factor) that came before the entry.
