1. Unclear Strong Resistance Area
When the stop loss point is not placed at a strong and clear resistance area, the risk of hitting the stop loss is higher. To mitigate this, prioritize choosing clear resistance areas with strong momentum. This will help you have a safer stop loss point.
2. Signs of Strong Retracement in a Trend
When trading in a trend and noticing signs of a strong retracement, check further on larger time frames to determine whether the price is approaching a dangerous resistance area.
3. Do Not Enter a Trade When the Trend Has Lasted Too Long
If the trend has lasted too long, do not rush to enter a trade. At this point, buying or selling pressure will weaken, and if you enter a trade, you may easily fall victim to a market reversal and hit your stop loss.
4. Enter a Trade When Price Moves Sideways or Short-Term Down in an Uptrend (Opposite for Downtrend)
Avoid entering a trade when the price moves sideways or down in an uptrend. This can lead to the price continuing to drop and you hitting your stop loss.
Important Note:
In reality, don't worry too much about over-analyzing. The important thing is to enter the trade using the right method and adhere to your trading rules.