this is something I think is really important. In trading you have to build your edge and there is great edge when you combine timeframes. Of course the combination is taking targets from higher timeframes and stoplosses from lower timeframes. Here we can see nice pole from daily demand. According to this situation we have a plan to zoom in and find the right entry with much smaller SL than we got on daily timeframe. The reason is just simple – higher the RRR
GbpUsd LMT 1,2768
The right entry could be price around 1,2768, SL 1,2742 (26pips) and target from daily 1,2936 (168pips).
This could give us RRR 6,46 and with the management I’m using it could be twice as much, so RRR12. I quite like solid targets, but thats something good in lower timeframes where price swings up and down many times a day. When you are trading the higher timeframes, than the better choice could be tracking the position, adding volume or reducing the risk. There are many right ways but similarity is in position management. Just take a look what price does and react.