Quote:
Originally Posted by akeakamai
Ain't that the truth! 5pip SL can work only if somewhere in those 5pips is a support or resistance created by the wick of a candle on a smaller time frame. Round figure S&R are valid, but there is always volatility around these numbers even if they do turn out to be barriers to price movement.
I never go below 10pips trading a 5min chart, so 5pips sounds best suited for a 1m chart. And it looks like you are trading a 15min chart from the image you posted!
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Actually fellas (I shoulda mentioned this) I was using this strategy as a day trading strategy, so I was using the 15min chart, with a 20!! PIP stoploss that's 20!! PIPS so on those three occassions my 20 pip stoplosses were hit exactly not 5 but 20. The average move in signaled direction was about 40 pips after entry but I wasn't taking them because a lot of times I saw 80 to 150 pip moves, so I followed the system and exited when the bands touched back the problem with that though was that a lot of times when they did touch bach the price would be right above or below entry price so there was nothing gained. So that's 20 pips not 5.
Jordan