Quote:
Originally Posted by ramrocket
For me, I just watch and wait on the sideline during major economic news release. It's too risky.
Pipbull I am curious to know what methodology do you use to properly place your stops outside of the market noise. How many pips have you seen broker's platform can spike the price just hit your stop loss? Is it really that hard to regulate brokers platform to avoid this type of hunting?
|
I think you are smart for waiting on the sidelines during economic releases. At the very least, if you have a position open and it is in profit, you should either cash out or lock in some profit before the release.
Since i am swing trading, the stops i place are a safe distance away from the previous swing high or low, where support and resistance can be expected to hold. The other technique you can use to safely avoid random market noise is the ATR*3 (Average True Range). Look at the ATR of whatever time frame you're in over the last 14 periods, take the average of that, and multiply that by 3. This will place you with a wider stop, but it is considered by many to be the best way to stay away from the noise. I don't use that technique so i might be getting the exact calculation wrong, but that is the jist of it. You can read about it anywhere and everywhere. Just make sure your risk:reward remains favorable.
Cheers