Disliked{quote} I often make the mistake that the price runs 1R and then turns back, if I close the order according to the 5MA, it is usually a loss or SL, How do you usually close the order, can you share it with me, thank youIgnored
(a bit of trivia: "heikin ashi" actually means "average leg". Heikin is "average".)
That means depending on how you place your SL, by the time the candle changed color and it crossed back the 5 EMA, SL is hit already.
What I usually do is, on Tradingview I have two layouts: heikin ashi candle and normal Japanese candlestick.
I monitor how candles on the normal chart form, and when I see a clear engulfing after rejection, that's the sign for me to get out.
I know, this way of managing your open trade seems a bit out of place because we are supposed to use heikin ashi candles, right.
Well it's just me and my background of being used to trade with normal candle and without indicators, so I have this layout just in case.
But, if we follow the "way of the game" by using only heikin ashi candle,
I strongly suggest you, especially if you trade on 1H and lower, to place your SL not above/below 1-2 candles before, but rather above/below previous high/low.
This way, believe me, you will be able to exit the trade with minimal loss, just like I experienced this week (about 3 consecutive losses but the total drawdown isn't even 1% of my account).
"But the wider the SL, the lower our RR will be"
Obviously. But in this system, as Ali said multiple times already, we focus of what we can control: our risk.
At least for me personally, I believe we are not trying to achieve a super precise entry with 12-13R target like our friends over there at the SMC (Smart Money Concept) technique.
Hope that helps!
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