After finding the potential trade signal, decide to enter at market prices, or wait for a pull back to get your stop loss tighter to reduce overall risk. In the chart example above, given the ‘perfection’ of the setup, as prices started to move up in the correct direction, a long entry could have been taken, momentum in the correct direction is always a good sign. - See more at: http://www.learntotradethemarket.com/forex-trading-strategies/trading-50-percent-retracements-price-action#sthash.gyrBtQ5Z.dpuf