$WLFI

📈 Strategic Buy Setup: Mastering Support Bounces with Swing Low Protection 🛡️

Market Perspective:

When an asset hits a major support zone and reacts with a strong rejection followed by a bullish close, it often signals a shift in market structure. To trade this effectively, a disciplined approach to risk management is essential—specifically using the 'Swing Low' as your defensive line.

Technical Breakdown of the Setup:

The Entry Trigger:

Wait for a clear bullish reversal candle (like a Hammer or Bullish Engulfing) to close above the support level. This confirmation shows that buyers have reclaimed control of the price action.

Setting the Stop Loss (SL) at the Swing Low:

For a high-probability buy trade, the Stop Loss is strategically placed just below the most recent Swing Low.

Why Swing Low? This is the point where buyers last stepped in to push the price up. If the price breaks this level, it means the bullish thesis is no longer valid.

The Buffer Rule: It’s wise to place the SL slightly below the actual low to avoid getting "wicked out" by minor market volatility.

Profit Targets (TP):

Your primary target should be the next major resistance zone. Always aim for a healthy Risk-to-Reward ratio (like 1:2 or 1:3) to ensure long-term profitability even if every trade isn't a winner.

Trader's Wisdom:

Trading is not about being right 100% of the time; it’s about managing your losses when you're wrong. Using a Swing Low SL protects your capital and ensures that one bad move doesn't wipe out your progress.

What is your preferred method for placing Stop-Loss? Do you use a fixed percentage or do you follow technical swing levels? Let’s share ideas below! 👇

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