In the next chart, there is a downtrend.
The trend drawdown in pips is:
1.3065 – 1.2955 = 0.0110 (110 pips)
Now let's calculate the percentage drawdown. The visible downtrend starts
from the high at 1.3283 and the maximum low is at 1.2682. The overall move
in the current chart is:
1.3283 – 1.2682 = 0.0601 (601 pips)
The percentage drawdown is:
110 / 601 = cca 18%
The trend reliability is moderate. Place the Stop Loss at least 111 pips above
the entry point.
The ultimate solution
Discipline and patience are the two key points to succeed in the Forex market.
Stop hunting the market for every potential trade. Prepare before trading.
Scanning a few currency pairs on all time frames can take you about 15
minutes, but the consequences are invaluable. Pick only the best trending
currency pairs and time frames and ignore all other unpredictable movements.
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