View Single Post
  #182 (permalink)  
Old 04-04-2008, 01:35 PM
tymen1's Avatar
tymen1 tymen1 is offline
FX-Men Honorary Member
 

Join Date: Mar 2007
Location: Perth, Western Australia
Posts: 1,539
Default

Quote:
Originally Posted by cbarnett808 View Post
I'm really looking forward to test driving this system soon, but I have one question first: How do you handle your stop losses?
Firstly, thank you for the kind words.

I have yet to deal with stop losses since I have the 5 min entry method and also the staged 3 part entry for which I showed only 1 post.

But quickly said, for an evening star, place your stop loss 2/3 pips above the highest point (middle candle - the "star").

Do not place the stop just 1 pip above it. The bucket shop brokers know about this and if the broker has a 1 pip difference from interbank feed, it is possible that your stop could be hit on a reversal.

After that you will be very disappointed as you see the price roar in the correct direction.

Use the above tactic and you should be alright. Cheers!