yes.giving over 10 times the risk.
and that is one of the advantages. huge rr when it starts to trend. also notice that the entry is often at a very good price, meaning cheep.
---------- Post added at 07:17 PM ---------- Previous post was at 06:59 PM ----------
yes, i am quite aware. thank you. i have tried several sma's and ema's for this. they all work (pretty much), but do provide different signals though.I want to share some my knowledge for developing your trading system. You can also use Simple Moving Average 20 in H4 time frame which provide you accurate and early signal of changing the trend
here are some more signals that i went over today. this chart is GBP/USD m15. EMA is 50. the blue sqares are measuring tools, not really outlining any levels. they show the pulses and project movement.
notice how the flat priceaction provides little but plus/minus zero results in this first segment.
now look at this one, where it starts to trend. bigger rr and bigger profits. suddenly it all looks very good. remember also that "only one trade per price-level".