Indicators or price action tools to help with exits | Forex Factory

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Indicators or price action tools to help with exits

  • #1
  • First Post: Oct 3, 2013 8:58am Oct 3, 2013 8:58am
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades.
This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk?
Thanks
  • #2
  • Oct 3, 2013 9:15am Oct 3, 2013 9:15am
Quoting w.penn
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades. This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk? Thanks
Hi Penn,

I find myself on the similar side. Recently I thought of a plan to save myself from killing trades prematurely. The temptation to kill them is the fear that the trade might end up in losing and so lets take whatever is there on the plate. And once that is taken, we come in the gilt mode and looking at hindsight on what would have happened in case had we allowed the trade to flow

In case you are using Dollar Risk Concept to set your stop losses and Take Profits, then the Take profit can be divided into 2 parts.
Half Position profit is taken at 1R gain and another half is left to flow and profit be taken at either 2R or 3R depending on the momemtum.
1) In case 2R is taken for remaining half => Total Profit = 0.5*1R + 0.5*2R = 1.5R
2) In case 3R is taken for remaining half => Total Profit = 0.5*1R + 0.5*3R = 2R
3) In case, markets moves in opposite direction and hits SL, then there is no gain no loss.
4) In case market is in a very strong flow, then SL can be moved(like trailing stop loss) with a gap of 2R for trade to breathe.


currently I am practicing this strategy. By following this strategy, at least I find comfortable to move away from screen once initial 1R is booked

You can see my trades in "Jankone M5 thread" .

Hope this is useful.
  • #3
  • Oct 3, 2013 9:48am Oct 3, 2013 9:48am
Quoting w.penn
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades. This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk? Thanks
Have you tried a trailing stop of part of your trade once brought to BE?
  • #4
  • Oct 3, 2013 10:04am Oct 3, 2013 10:04am
Quoting w.penn
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades. This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk? Thanks

If you are using PA to enter, why not use PA to exit. I am not sure exactly how you enter cuz u did not mention that part, but assuming you use some sort of S/R or S/D areas, you could consider exiting at those areas also, and like other posters mentioned above, you could consider moving to BE at some R:R level (usually 1:1) or closing part of your position at that 1:1 level (now you have a free trade), letting the rest run to the next R/S or S/D area, closing another part once that is hit, etc. )

Other ways to trail your winning position would be to trail your stop to the previous swing high/low as the trade moves in your favour (if in a long term trade), or if you are short term trader, consider moving your stop to high/low of preceding two bars
  • #5
  • Oct 4, 2013 4:05am Oct 4, 2013 4:05am
I quite like using CCI (7) for exits; when it goes above/below 100 /-100, think about quitting, especially if it's sharp. Good for entry confirmations too.
  • #6
  • Oct 4, 2013 4:42am Oct 4, 2013 4:42am
Quoting w.penn
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades. This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk? Thanks
Why don't you post a chart of each trade you took?
  • #7
  • Oct 4, 2013 5:08am Oct 4, 2013 5:08am
Quoting w.penn
I tend to have pretty decent entries into trades, I use mostly PA no indicators on my charts, but my problem is exits. I never get out at a good spot in my trades. This week alone I have let about $2500 come back at me and stop me at Breakeven. Does anybody have any tricks or indicators that can help me stop being such a greedy jerk? Thanks
Hi Penn,

The best Exit Strategy is to use Support and Resistance Indicator and if you are long Exit when you see the candles touching the Resistance Level and coming back. If you are Short then wait until the candles touch the Support Level and retrace back. Sometimes the candles may not touch the Support and Resistance levels but when you see them Shy away and retrace, take the profits and get out quick. You will have many more opportunities during the day to take new trades if you are a Day Trader. No need to babysit your trades in the hope of making more pips.

You can also use Fibonacci Levels for your Exits.

John
Winning is a Great Feeling!
  • #8
  • Oct 4, 2013 5:14am Oct 4, 2013 5:14am
I use congestion break out v2 .
  • #9
  • Oct 7, 2013 6:13am Oct 7, 2013 6:13am
I'm inclined to say it's impossible to advise without knowing (approximately) what your trading edge is. Do you trade with the trend or against it (ie. shorting tops etc). If you're trading with the trend then you really should be more confident about your trades and be looking for to stay in for a fair bit. Have you analysed how far your winning trades go in terms of approximate risk/reward? If the average is 2.5:1 RR then you've got your answer right there. Best advice I was given was to set the target and walk away...
  • #10
  • Oct 10, 2013 11:00am Oct 10, 2013 11:00am
Sorry something came up and I was away for a little bit, but thank you for your input. I use mostly supply and demand for trading and the simplest answer would be ya, using price action and those levels to exit a trade. I am going to try everyones suggestion on my paper trading account for a little and see what works for me best. I think it is mostly mental, so as bootsyjam said, I should probably just set the target and walk away!
Thanks again.
  • #11
  • Last Post: Oct 10, 2013 2:43pm Oct 10, 2013 2:43pm
What I use which is quite effective is the Kijun-sen in the ichimoku indicator. Why is it effective? it takes what ever period (lets say the 26 standard which is what I use) high and low and divides by 2. this give the trade enough room to breath without getting closed out.

If you set the target and walk away then you really need to account for the range of the session you are trading in. i.e. day trading use the daily range and set 70 - 80% providing it hasn't allready moved the other direction 50% already.

Just put the ichimoku on your chart and only leave a color on for the Kijun-Sen.
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