Where you place your SL would depends on your buy entry - example are you in Round 1 or Round 2 buyers ?
If you are in Round 1 buyers, likely your SL would be at 4400 level or slightly below. At current price, you can take partial profits as you have achieved 1:1 risk/reward ratio.
You could also adjust your SL to the breakeven point so in the event if price moves against you, you are protected.
if you are in Round 2 buyers, then you are slightly more anxious if the price moves down as it is likely you are taken out if you SL is around 4787 region. Many reasons why you are in Round 2 and not Round 1 in case some may asked.
1. You are over diversified - forex, indices, commodities, shares, ETFs, etc. Within each class, there are many you can trade and to monitor so many requires capital, time , effort.
2. You are unsure - past losses preclude you from participating , thinking to yourself if this is real or false? by the time you are ready to pull trigger, price has move to round 2 level and you managed to muster enough courage to buy it. The future - your bet is as good as mine. Only the market knows where it is heading next.
3. You rely on main trend rather than sub-trend as a reliable tool - no right or wrong , everyone uses trend line differently. So long as you are comfortable and it makes money for you, good enough.
4. You are totally new to this , heard from a friend that it is going up , so you buy on rumour. Again, nothing wrong if you do your own fact find , have a clear trading strategy. I received so many trade ideas daily from friends, media, own research but I do not trade all. WHY ? I can't afford the time , I have not done the research (past mistakes was to buy/sell blindly and betting on luck is dangerous), my funds are already deployed elsewhere, i am not comfortable,etc.
Of course, if price continues to move upwards, then both Round 1 and 2 buyers are equally happy.
Examined from another angle, you can participate in both rounds. Round 1 as your first entry and round 2 as your average up entry.
This can be applied in all instruments as well. This is just one of the many trading strategies you can employ in your course of trading. You need to stay on a few instruments and have a good feel of it before trying this method else it can also backfire on you.
Trade with care !
If you are in Round 1 buyers, likely your SL would be at 4400 level or slightly below. At current price, you can take partial profits as you have achieved 1:1 risk/reward ratio.
You could also adjust your SL to the breakeven point so in the event if price moves against you, you are protected.
if you are in Round 2 buyers, then you are slightly more anxious if the price moves down as it is likely you are taken out if you SL is around 4787 region. Many reasons why you are in Round 2 and not Round 1 in case some may asked.
1. You are over diversified - forex, indices, commodities, shares, ETFs, etc. Within each class, there are many you can trade and to monitor so many requires capital, time , effort.
2. You are unsure - past losses preclude you from participating , thinking to yourself if this is real or false? by the time you are ready to pull trigger, price has move to round 2 level and you managed to muster enough courage to buy it. The future - your bet is as good as mine. Only the market knows where it is heading next.
3. You rely on main trend rather than sub-trend as a reliable tool - no right or wrong , everyone uses trend line differently. So long as you are comfortable and it makes money for you, good enough.
4. You are totally new to this , heard from a friend that it is going up , so you buy on rumour. Again, nothing wrong if you do your own fact find , have a clear trading strategy. I received so many trade ideas daily from friends, media, own research but I do not trade all. WHY ? I can't afford the time , I have not done the research (past mistakes was to buy/sell blindly and betting on luck is dangerous), my funds are already deployed elsewhere, i am not comfortable,etc.
Of course, if price continues to move upwards, then both Round 1 and 2 buyers are equally happy.
Examined from another angle, you can participate in both rounds. Round 1 as your first entry and round 2 as your average up entry.
This can be applied in all instruments as well. This is just one of the many trading strategies you can employ in your course of trading. You need to stay on a few instruments and have a good feel of it before trying this method else it can also backfire on you.
Trade with care !
Note
Tricky ya? It gives you a fake breakdown, trapping sellers to come in and disappoint them later when it goes back up
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.