About Scott.

The gist of what I do is actually extremely simple. Place the TP where it’s likely to be hit, and the SL where it’s likely to NOT be hit.

How?

Say you bought something for $20 with plans to resell it. The current range it sells for is between $15-50.

You’d place your TP within this range, as you want it to be hit. Something like $40. Then your SL goes outside the range, since you don’t want it to hit, at like $10.

That’s how price works, for anything. If gas in your area is $2-4 a gallon last year, are you better off betting that it’ll stay between $2-4 or are you betting that it’ll jump to $9? You already know $2-4 is more likely, so your TP would go between $2-4 and your SL would be about $1.50.

New highs and new lows happen less often than ranges, so your TP belongs in the range, and your SL belongs with a new high or low (or at least a high or low that hasn’t been touched recently, you get the point.)

Yes. It’s really that simple. Try it.