on EURUSD chart we see a perfect example of how a trader can variate a risk:
we have three perfect entry levels for long trade: 1.08 level - current structure (previous low) 1.07 level - current structure low 1.06 level - support of the major channel
1.06 level gives the safest long entry with a very tight stop and high potential reward. historical perspective is on our side here, and we see that after each test of the channel's support in the past, we saw a strong rally to the upside.
1.07 level is a moderate entry from a current structure low. here we play as a skeptic, not believing that the market is willing to push below the current low.
1.08 levels is an aggressive entry. here we assume that the market is way oversold already, and even if the current lows are close enough, bears are already exhausted.
I am suggesting enter at least from 1.07 level but only after a good signal or try to catch the market from the support of the channel!
from which level do you prefer to enter?