The RZH in Chart 18 is 5932. On 11/10, prices close within the Retracement Zone at 5782.
Remember, you are dealing with the future - something that can be anticipated but not verified. There's no guarantee on 11/10 that prices will trend exactly to 5932 and then reverse. They could very well continue past 5932 to the 75% or even the 100% level.
But let's say, for whatever reason, you want to liquidate your current position. This could be the way to do it.
11/4 could be a minor reaction point from which S5 (63-degrees) can be drawn. S5 is the resulting stop-loss line. Place a "day-only" order with your broker to sell your position at the RZH price of 5771.
Every day move your stop-loss order up along S5 to the previous day's level and replace your day-only sell order of 5771. If you get 5771, fine. If you don't, you still have the added protection of a stop being moved closer and closer to current market prices. You are establishing a narrower and narrower price channel.
Safety AND maximum profits - when handled correctly these stops can be very worthwhile.
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