usdcad if bull 2738 might give the entry later.
- #5,442
- May 20, 2016 3:20pm May 20, 2016 3:20pm
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
When life gives you lemons, make lemonade
- #5,445
- May 20, 2016 8:59pm May 20, 2016 8:59pm
- Joined Oct 2008 | Status: sideline is a position | 105,127 Posts
those who can, do. those who cant, talk about those who can
- #5,446
- Edited 5:21am May 21, 2016 2:40am | Edited 5:21am
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
this is one type of accumulation/distribution by smart money that pisses me off. 
strong break out trend, then accumulation, then signal in the first yellow circle with stop at horizontal red line, the strong trend suggests a continuation/mark up of the price then suddenly smart money break my stop loss in second circle with a fake breakout in other direction, then price mark up starts.
so stop loss is like a guessing game, put it tight and miss the boat or put it at the trend low and risk bad RR
and either wait for signal before jumping in, or buy blindly on retracement
how do you deal with this stop loss hunting? how would i guess where my stop is safe?
and by the way, the signal in the second circle gives a wider stop and lower reward because the first fibonnacci target get closer, so bad RR maybe 1:1. if you eat up the loss in the first stop loss, say -7, then you jump in the second signal, you will only gain +7 or so as well with bad RR. if you aim at higher targets, in many cases the price will hit the first target and bounce back to your buy level to close it at break even before going higher so same dilemna.
strong break out trend, then accumulation, then signal in the first yellow circle with stop at horizontal red line, the strong trend suggests a continuation/mark up of the price then suddenly smart money break my stop loss in second circle with a fake breakout in other direction, then price mark up starts.
so stop loss is like a guessing game, put it tight and miss the boat or put it at the trend low and risk bad RR
and either wait for signal before jumping in, or buy blindly on retracement
how do you deal with this stop loss hunting? how would i guess where my stop is safe?
and by the way, the signal in the second circle gives a wider stop and lower reward because the first fibonnacci target get closer, so bad RR maybe 1:1. if you eat up the loss in the first stop loss, say -7, then you jump in the second signal, you will only gain +7 or so as well with bad RR. if you aim at higher targets, in many cases the price will hit the first target and bounce back to your buy level to close it at break even before going higher so same dilemna.
When life gives you lemons, make lemonade
- #5,447
- May 21, 2016 6:09am May 21, 2016 6:09am
- Joined Aug 2013 | Status: Trader | 4,057 Posts
this is one type of accumulation/distribution by smart money that pisses me off.
- #5,448
- May 21, 2016 6:23am May 21, 2016 6:23am
- Joined Dec 2015 | Status: Trader | 7,803 Posts
this is one type of accumulation/distribution by smart money that pisses me off.
- #5,449
- May 21, 2016 6:29am May 21, 2016 6:29am
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
{quote} try looking at larger timeframes, use m5 for entry
When life gives you lemons, make lemonade
- #5,450
- May 21, 2016 6:36am May 21, 2016 6:36am
- Joined Dec 2015 | Status: Trader | 7,803 Posts
{quote} same happens even on the 1Month
http://www.forexfactory.com/showthre...34#post8784434
- #5,451
- May 21, 2016 6:59am May 21, 2016 6:59am
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
{quote} on monthly timeframes your stops should usually be larger... unless your entry is perfect... so placing 10p stops on monthly will almost always get you (unless your ken or someone like that) trading small timeframes like that and you'll have a lot of losers just trading on pullbacks or whatever gave you your signal. believe me ive been there, check my posts when I first joined
who is ken?
When life gives you lemons, make lemonade
- #5,452
- May 21, 2016 7:03am May 21, 2016 7:03am
- Joined Dec 2015 | Status: Trader | 7,803 Posts
{quote} its the same reasoning... stop loss at max retracement could be hit as stop loss hunt, so where should stop loss be??? no idea who is ken?
and listen/study methods or psychology of others on here, such as ken
- #5,453
- May 21, 2016 12:50pm May 21, 2016 12:50pm
- Joined Apr 2013 | Status: I'm learnding! | 8,973 Posts
- #5,455
- May 21, 2016 2:10pm May 21, 2016 2:10pm
- Joined Dec 2015 | Status: Trader | 7,803 Posts
{quote} If you can do 1500 pips a day with a 10 pip stop loss, then you will know who Ken is
- #5,457
- May 21, 2016 2:16pm May 21, 2016 2:16pm
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
When life gives you lemons, make lemonade
- #5,460
- May 21, 2016 4:33pm May 21, 2016 4:33pm
- Joined Mar 2008 | Status: Fooled by randomness | 8,362 Posts
When life gives you lemons, make lemonade