medium · Volume Spread Analysis effort-vs-result-spread
A practitioner identifies a 'Bearish Two-Bar Reversal' where Bar 1 is a wide-spread up-bar on ultra-high volume and Bar 2 is a wide-spread down-bar closing below Bar 1's low.
Where is the most logical place to set the stop-loss for a short position?
- Just above the high of Bar 1
- At the closing price of Bar 2
- At a round number near the high of Bar 1
- Below the low of Bar 2
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