Dislikednewbie question. for USDJPY (short 113.58) where do you put your PT and SL, since 10 pips for the price is insignificant. also I plan on risking 1.5-2% of my micro bankroll. does this sound on the safe side for Dales levels? Huge thanks for Dale, loving this threadIgnored
1.5-2% is totally safe
regarding stops and PT's, you will see many variation throughout the thread, just remember what we are looking for with these intraday levels - we are looking for a reaction, pullback etc, but not a trend change. You will find that these levels are so accurate that sometimes they will give a trend change, but that isn't what we are looking for. We are looking to be right frequently in order that we can take a small bite out of the market.
Dale trades with a 12 pip stop & a 10 pip PT, but he is very active and expert at reading what is happening and will both move his stop and close early if he believes it's the right thing to do.
I personally have a different approach in that I use a 20 pip stop and go for bigger targets, 15-20 in my case.
Of much greater importance than either the stop or the PT is knowing when to let a trade pass, and that means never taking a trade close to major financial news times, waiting for the volatility to calm down after a news release, never going against a strong move that has come about because of a national banking news item, and if the level has already been tested but not actually touched. You will often find as price approaches a level and some kind of reaction arises early that someone will post in this thread if they consider a test has been made. There are no clear cut rules for a test, but I can give you a pretty decent set of rules to apply. If price gets to within 5 pips of the level, and then pulls back such that it is 15 pips away from the level, then consider the level consumed. If you leave all trades that do this I guarantee your results will be better in the long term, ie your strike rate will improve.
Good luck ziggy
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