I cannot understand why the stop loss of bearish marubuzo is set to the high of the candle. It is mentioned in varsity but not given reason for this. Can anyone provide logical reason along with any example please ? I am not being able to understand the reason properly.
In the candle after bearish marubuzo, the price going above the high of marubuzo means that the downtrend which you expected to continue is most probably not going to happen.
Why is the SL set to high of marubozo? Bcoz that can be considered as the starting point of the downtrend.