I made this post in another thread, but I just wanted some feedback from you guys 
Figuring out where to set the stop is a tricky thing for me at the moment. I look for stops based on support and resistance that is identifed immediately before the candlestick that is currently in motion. For example, imagine being on the 30min time frame and then you look back at the last few candles and where you see a noticable peak or low, then that peak would be resistance and the low would be support. So. the distinction I make is to look at the support like or resistance line immediately before the current candle stick and use that as a stop or take profit point.
I'm not sure if what I say makes much sense.
Next I look at the lengh of the candle shadows and how big the candles are, and how many or bull or bear candles are present. If I see a lot of shadows below the candle real body then I assume that there is a lot of buying push and therefore bullish. But if the shadows are on the opposite end then I assume that there is a lot of selling pressure so I get ready to go short.
Currently I like it if the RSI passes below the 50 line and if the factors above line up then I make the trade. If the RSI passes above the 50 line then it is bullish and as long as the above factors line up, I make the trade.
It is very simplistic at the moment but the thing I find most difficult with stops is the volatility. When London open happens and New York is open there can be a lot of volitality. I haven't quite figured out how to incorporate that into where to set stop losses. One thing I have learned from my records is that when ever it goes 20pips away from me during london open, then I know I'm in the wrong direction.
If I am on the Tokyo open then I use a hard 6pip stop loss for EUR/USD (in combination with where the support and resistance lines are).
You ask, why not let profits run..this is true. I do that sometimes. But I just think that basing take profit zones just before resistance levels is a good place to take profit because often when you get to resistance the trend bounces in the opposite direction. So when it hits resistance I often look to get ready to go short in the opposition direction.
As for doing 20 trades or just 4. Ofcourse I'd like to do just 4 but personally I'm not sure that that method is a good fit for me because I like to be active and know that I can continually take something from the market, even if it is just a small amount.
I'm still learning and very flexible. I'm trying to build a definitive methodology that I can consistantly apply. I'm finding that aspect challenging as well. Sometimes it can be tough to figure out if you have an edge or if it is just probablility going in your direction.
Figuring out where to set the stop is a tricky thing for me at the moment. I look for stops based on support and resistance that is identifed immediately before the candlestick that is currently in motion. For example, imagine being on the 30min time frame and then you look back at the last few candles and where you see a noticable peak or low, then that peak would be resistance and the low would be support. So. the distinction I make is to look at the support like or resistance line immediately before the current candle stick and use that as a stop or take profit point.
I'm not sure if what I say makes much sense.
Next I look at the lengh of the candle shadows and how big the candles are, and how many or bull or bear candles are present. If I see a lot of shadows below the candle real body then I assume that there is a lot of buying push and therefore bullish. But if the shadows are on the opposite end then I assume that there is a lot of selling pressure so I get ready to go short.
Currently I like it if the RSI passes below the 50 line and if the factors above line up then I make the trade. If the RSI passes above the 50 line then it is bullish and as long as the above factors line up, I make the trade.
It is very simplistic at the moment but the thing I find most difficult with stops is the volatility. When London open happens and New York is open there can be a lot of volitality. I haven't quite figured out how to incorporate that into where to set stop losses. One thing I have learned from my records is that when ever it goes 20pips away from me during london open, then I know I'm in the wrong direction.
If I am on the Tokyo open then I use a hard 6pip stop loss for EUR/USD (in combination with where the support and resistance lines are).
You ask, why not let profits run..this is true. I do that sometimes. But I just think that basing take profit zones just before resistance levels is a good place to take profit because often when you get to resistance the trend bounces in the opposite direction. So when it hits resistance I often look to get ready to go short in the opposition direction.
As for doing 20 trades or just 4. Ofcourse I'd like to do just 4 but personally I'm not sure that that method is a good fit for me because I like to be active and know that I can continually take something from the market, even if it is just a small amount.
I'm still learning and very flexible. I'm trying to build a definitive methodology that I can consistantly apply. I'm finding that aspect challenging as well. Sometimes it can be tough to figure out if you have an edge or if it is just probablility going in your direction.
