EUR/GBP is getting to an interesting spot. Close the the H4 trendline and near recent highs.
- #4,302
- Feb 19, 2010 11:58am Feb 19, 2010 11:58am
- Joined Dec 2007 | Status: Trading the Trends | 2,584 Posts
- #4,307
- Feb 19, 2010 12:13pm Feb 19, 2010 12:13pm
- Joined Dec 2007 | Status: Trading the Trends | 2,584 Posts
- #4,310
- Feb 19, 2010 12:32pm Feb 19, 2010 12:32pm
- Joined Dec 2007 | Status: Trading the Trends | 2,584 Posts
Also while I am letting it do it's thing, I switch over to the 5 minute chart and measure the last impulse move that was at least 40 pips in length. Then I draw fibs on that retracement and use the 75% as my exit if the target has not been hit. Not that anyone has to to do it this way but I thought I would post one of the methods I use for following the trade.
--NM
Any chance you could put up a couple more of these in trade management charts..great stuff to learn on this thread!!
cheers,
Adrian
- #4,320
- Feb 21, 2010 7:42am Feb 21, 2010 7:42am
- Joined Dec 2007 | Status: Trading the Trends | 2,584 Posts
Hey NightMoves..
Any chance you could put up a couple more of these in trade management charts..great stuff to learn on this thread!!
cheers,
Adrian
The intrade management, like I posted is something to give you an idea of howlong to keep a trade open, intraday trades are a little more sporadic and 20% of the ADR is usually a good way to set targets, if you let your trades run over several days, then i have found that using the 75% of a 40 pip move ususally keeps you in the game for a lot longer.
That was based off another trading method but it does seem to work fairly well. The only thing is you have to keep moving your active wave because only the waves that move 40 pips or more are considered. And those are based off a 5 minute chart, I can post some examples, when I tighten my stops on the intraday level, then I cut that down to 20 pips unless my target has beeen reached.
For example in the CADJPY trade, then I had tightened my stop I only had 15 pips at risk and price had to reach 30 pips to reach the ADR, and it fell short. On the 5 minute chart I could see it had got into a box range and it was late in the day on Friday, and it never broke the top of that range for a couple hours, so I closed it out, and eventually it would have taken out my stop anyway.
So when your already in profits I feel its best to have a limit on how much your willing to give back based on the ADR for intraday levels for intraday intraday trading. Long term trading the rules are a little different...
When in the long term trades of course the intraday levels really do not mean anything, and it is all S/R, and following the 75% rule can keep you in a trade a long time, basically what you do is measure the last impulse wave, and as long as you do not get a full candle close beyond 75% you stay in and ride the next impulse, and then move your Fibonacci lines to the new impulse and start all over again.
It always nice to take some profit out of the trade in case it does do a 180 on you then you still scored some profits on the trade. However though in a good solid trend most retrace to around the 38% to the 61.8 % and thats the window we would be looking for and entry on the intraday level anyway.
Here is a chart showing the Long term trade management method...none of the impulse waves had a closing candle inside the 75% Fib, so no exit signal was generated and the trade goes on. What I like to do is take partials out at the first ADR level after entering or the first TP level however I have decided on the the first TP, and then let it run after that. Move Stop to BE and then just let the profits go...
You can check any trending pair on your charts and check them using the Fibonacci and you will find this technique would have kept you in the trade a long time...
--NM
