This is a classic example of how the indicator kills stress. You see the short signal to sell. And then it hits our target – the blue line. Thereafter it rebounds back up to the entry.
We cut stress because:
- We knew at entry the target level based on our indicator which monitors market volatility and historic pattern recognition
- We did not see a winning trade turn to a losing one
- We could place the trade and walk away because we enter the take profit at the same time as the sell order