Where there is a nice pullback with smooth stochs but the entry is quite far from the 100sma, this is what I do:
I setup a 2xATR SL. If the SL just a bit below the previous pullback highest point, I use about 2.5ATR so that the stop is located right at the previous high point. If it goes past that point, I want to be taken out the trade as it would be a higher high.
Since the 100sma can take a very long time before starting to trail the stop, in the case it goes in my direction by about 150/200 pips (that number actually depends on the pair traded of course), I move the stop to BE and then let it run normally.
Update on the trades taken since June 25th: 5 trades, all in the green, for about 1000pips of floating profit so far. I know I don't have the same candles as yours Hugh but here are my entry points:
EURUSD: Short @ 1.3078 on June 25th.
GBPUSD: Short @ 1.5419 on June 25th.
USDCAD: Long @ 1.0539 on July 2nd.
USDCHF: Long @ 0.9485 on July 2nd.
USDJPY: Long @ 100.03 on July 3rd.
The last 2 were pretty bad entries. I am still trying to understand why i took the trades.
Being really exposed to USD, I moved the 2 early positions to BE last week. Maybe closing the 2 poor trades early would have been a better decision to take?
Cheers
I setup a 2xATR SL. If the SL just a bit below the previous pullback highest point, I use about 2.5ATR so that the stop is located right at the previous high point. If it goes past that point, I want to be taken out the trade as it would be a higher high.
Since the 100sma can take a very long time before starting to trail the stop, in the case it goes in my direction by about 150/200 pips (that number actually depends on the pair traded of course), I move the stop to BE and then let it run normally.
Update on the trades taken since June 25th: 5 trades, all in the green, for about 1000pips of floating profit so far. I know I don't have the same candles as yours Hugh but here are my entry points:
EURUSD: Short @ 1.3078 on June 25th.
GBPUSD: Short @ 1.5419 on June 25th.
USDCAD: Long @ 1.0539 on July 2nd.
USDCHF: Long @ 0.9485 on July 2nd.
USDJPY: Long @ 100.03 on July 3rd.
The last 2 were pretty bad entries. I am still trying to understand why i took the trades.
Being really exposed to USD, I moved the 2 early positions to BE last week. Maybe closing the 2 poor trades early would have been a better decision to take?
Cheers