1 was stopped out of all twenty-five contracts at 37790. My loss was $2025 including costs. Prices had now formed a Ross hook. I placed a sell stop below the hook.

I did not place a sell stop below the correcting bar because I needed 2 ticks (ten points) to cover costs between the point of the hook and one tick below the correcting bar.

When there is not enough room to cover costs, I refrain from taking the trade.

Prices made a doji on the next bar, so I placed a sell stop under it just as it was closing This was the second bar of correction.

I placed a sell stop there because if I were to be filled 1 tick below the low, there would be enough room for me to cover costs by the time I reached the point of the Ross hook.

When prices made another doji, i could clearly count four out of the last five bars in congestion, with the last four closes within the price range of the fourth bar back. I canceled the sell order under the previous bar's low, but I kept a sell order under the Ross hook. I also placed a buy order above the small double top made earlier.

The downtrend was no longer intact. I was looking at congestion. The Ross hook formed the lower limit of the congestion, and the small double top formed the upper limit. A breakout of either would give me a trading entry.

I was filled short on a twenty-five lot at 37770. My stop loss was $250 per contract away, and my cost covering objective was 37760. Prices went as low as 37765.

The next bar went a bit lower, enabling me to cover costs with five contracts at 37760. I netted $100 for my trouble, and pulled my protective stop to breakeven (b/e) as the bar closed.

Prices dropped even further, making it possible for me to begin to protect half of the unrealized profits. I placed my stop at 37750.

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