US jobs numbers came out this morning, better than expected.
Marketmilk is showing that JPY and USD have been the most volatile currencies over the last 24 hours.
What if I had shown you this chart, shortly prior to the NFP and jobs release, and told you that there was a great big Cloud of Stop Losses occupying the space I have marked (SL loss Cloud)?
What that have changed your prognosis and idea of what really drives the markets?
What am I looking at?
Is that a level of support, so price will probably go up? Or you saying plenty of SLs for price to blown up as it moves down?
Last trade got stopped out! I was up, but not into my TP. Tough to see such a good move but then hoping for price to move even more, and it doesn’t happen and you lose pips.
I did end up moving my stop past BE but still, sucks when you come back to the chart and see your profits disappear.
I ended up keeping an eye on USDJPY since my last trade.
Took a long trade yesterday at around 1PM, entered at 136.54 Why there? Recent economic releases and reading analysis.
Price bottomed at 133 at the start of Dec I started trying to read up on DXY also to see what the dollar is doing.
It’s coming off lows as well.
Anybody else trading USDJPY but also watching DXY for help?
I was saved by a big SL. Made profit on it.
I’m using cost averaging and entering another buy trade when it looks like the price is bottoming out and heading in the right direction again.
My biggest obstacle from about 2 years of steady trading has been giving up on trades because I panic at losing $30 or more. But if the daily chart shows bullish and I panic and close out instead of letting it run I usually lose. In fact, seems like I always lose in those situations. Now that I allow the trades to play out, I rarely do worse than break even.
Do you have a general strategy of how much you allow price to go against you? Because I still think you made good decisions on entering those trades and I think they were winners.
When Im not scalping:
Lately, I’m allowing at least a $50 stop loss on 0.05 lot trade and closer to $100 on a 0.1 lot trade.
Wow, crazy image. What is all that?
Well, in the past it was just a fixed number, like 100 pips. Then I started the other way around, so first looked for profit targets and then tried to get my R:R at least 1:1 or better.
Now I’m just trying to look more at previous price levels, where I think price could go if I end up being completely wrong and use that to see if there’s a TP big enough on the other side to be worthwhile.
That make sense?
Any takers on EURGBP? Looks interesting on the daily. Weekly is down, Daily is down. Sitting right above a support area. Looks like a descending triangle with price about to have to make a decision.
Thoughts? I’ll have to watch this closely.
Absolutely. We are both still here, so we must be doing some things right.
As for me, I tried using 1:1, but it didn’t work for me. Maybe my entries were not good enough.
Now I look at support and resistance levels and always assume the market is out to get me so I add a lot of room over and under the S&R levels. Since price usually returns to those levels it gives me room to place another trade if price went against me for a while.
That changed so many of my losing trades that would get stopped out into winners or break evens.
I know, I know. Not a clean chart like the pros prefer.
But you can see my SL.
Yea, I’m learning this slowly.
I think being fixed is just too… rigid? Is that the right word maybe.
What’s some of that stuff you have on there?
Its the perfect word.
The white box is Level 2 Trading. When the Bid number is 60 or better, buy. When the Ask number is 60 or better, sell. Stay in the trade until the number falls below, say 55.
Indo Trend provides entry arrows.
MTF PSAR shows PSAR for multiple time frames.
But my next project is more appealing to me for scalping: $1,000 in under 2 hours if using 1lot trades yesterday, even if not done very well. Eur/USD 5M chart.
Indicators to make the channel are {upper green is 32EMA set to :“High”. lower green is 32EMA set to “low”. Yellow/Blue is 14EMA set to “close”. Level 2 indicator (free from market). PSAR set to 0.06 / 0.07}.
Enter when either White 6EMA crosses both Green 32EMAs or enter buy when Blue/Yellow 14EMA crosses above lower Green 32EMA. Enter Sell when Blue/Yellow crosses below upper Green 32EMA.
The indicators do not provide the green arrows. I put them there manually to show what to look for for entries. Closing could be when white EMA returns to touch channel? That’s a suggestion I got from another BP member. Now that I think about it, maybe we close when Level 2 gets to 55?
Wow, lot going on there. I’m not familiar with PSAR. I’ll have to do some research on that.
Ah, there’s a lesson on it here. How to Use Parabolic SAR in Forex - BabyPips.com
You made that much or that’s the goal?
That’s how much everyone using 1 lot and was able to trade from 9 to 11 est time should have made. I missed the first signal and used 0.5 lots x 50 pips. While in my car! Plus, regarding our stop loss conversation, if you enter when the 14 EMA crosses from below to above the lower green 32 EMA you can set the stop loss just under that lower green EMA so it’s very very tight. Big bonus.
I did it again while I was in my car today. I had a 20 minute drive and I entered. 10 minutes later I made 10 pips.
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