Have you ever compared the volume bars on different platforms
Not done that. Working in forex mainly now, but I never had much faith in any volume figures.
i agree just imitate the candles really ,just curious
I’ve never seen the magic in volume - big candle, big volume; little candle, little volume. No help at all.
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oooo great question! my favorite is bollinger band candle closes couples with an osccilator
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it only helps if you know what to do with that data. volume is key
Also another great exit point is the average daily range of the asset. especially for intraday style. if lets say a major pair averages about 60 pips of a range and im trend trading ill set top for at least half of the average daily range up to 100 percent of the average. and then there is also exit ting at specific times of day. the majors its easy to time because when know new york session moves the most amount of volume in usd during that time. so exiting halfway or at the end of NY session is ideal
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Or I could just close a long position after two consecutive higher closes…
That’s a great idea. I’ve been looking at prices crossing past the 1st Std Dev of a Bollinger band. Never thought of combining it with an oscillator.
Hi @tommor,
I saw your post while reading some other stuff and thought I’d add a few thoughts.
I (and others, of course) have often spoken about exit strategy as one the most critically important components of any trading strategy. And yet it is one of the hardest to optimise. And there is a good reason for that: Every trend is unique in its duration, strength and extent - and they can be very different from each other whatever TF one uses.
I think there are three broad approaches to exiting:
- a fixed distance in pips
- capturing extreme high/lows in moves (e.g. bollinger bands, envelopes, FIb extensions, etc)
- a measure of exhaustion and reversal (e.g. trailing stops, fib retracements)
None of these individually will work all the time but a combination of 2 or 3 such categories can work well.
For example, with multiple positions, opened either simultaneously or via scaling, exiting could be handled with a combination of:
-
a partial amount with a fixed pip target set at a distance typically achieved on a particular TF following an entry signal (e.g. 30-50 pips). This helps cover the exposure on the remaining open positions.
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and a further portion can target a spike or OB/OS where price reaches an extreme level determined by, say, bollinger bands, envelopes, RSI OB/OS, etc.
-
this then leaves the balance with no set target and is eventually exited on a trailing stop (either automated or manual).
A further alternative is to use multiple TFs to identify a reversal. If one is trading off a daily chart, then monitoring a set-up on a 4-hour or 1-hour chart can pinpoint trend weakness before it appears on the daily chart - and, in the same way, is also useful for providing new signals for re-entry.
I think the choice of exit techniques depends very much on the TF being used for trade entries. Trend trading on the daily (or longer) TFs usually means looking for longer, bigger moves and therefore offers more opportunities for varied combinations of exit approaches. But trading off, say, 1-hour charts and daytrading, in general offers a much narrower choice of exit strategies (e.g. trailing stops will usually give back most or all of any profit gained).
Just as an example, in my own case, I am a daytrader, I use only two techniques, 1) one fixed pip value for my target and another, related, pip value for stoploss, and 2) an envelope to catch extremes in moves. But neither of these are written in stone, rather they offer an initial setting which is then tweaked to account for possible S/R areas, recent high/lows, candles, etc.
I use exactly the same set-up on daily, 4-H and 1-H charts. The daily gives me the overall picture, the 4-H then tells me where we currently are in this overall picture (e.g. initial momentum, consolidation, exhaustion,- etc) these two tell me if I am generally looking to buy or sell. Then the 1-H chart gives me my entry signals.
Incidently, these same envelopes can also help avoid entering trades at extreme points as well as indicating exit areas! 
But these are just my thoughts on the topic. It is a very important issue for every trader. It is highly possible to achieve a high rate of entry success but still lose money. The entire issue of how much one makes from a winning trade is determined far more by where we get out than where we get in…
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Thanks for this really well thought through post.
I love the idea of blending two approaches for more certainty over an exit decision, something I must try out. Two valid tactics for a blended approach right now for exits would be either movement of RSI into extreme overbought or over-sold or two successive positive closes - whichever prints at the close. More study needed though.
Personally I would prefer to find a reliable tactic using the blended approach before I delve into a lower time-frame: my trades are D1 so I literally have time on my side when determining the next move and I’ve not found 4H or lower to make enough difference to change entry levels or entry timing much one way or tother.
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Something I’ve been trialing is splitting my trades in 2. So for instance if I usually risk 2% per trade, this would be 1R (risk). Then:-
Trade 1: risk set at 0.5R and I would trial my SL behind the low of the next candles (in a long position) until it closes.
Trade 2: risk set at 0.5R but a TP set at a multiple of R (1.5, 2, 3 etc). I will also trial the SL behind the lows of the subsequent candle lows.
In theory, trade 2 will catch more of the highs in price that you normally miss out on when using a trialing SL as an exit. This is all done on a D1 chart while following trends.
I record in my journal the R value I achieve from trades but I also record the ‘max potential R’ for each trade so I have a record I can review after each month to see which potential TP R value would of been best. Hopefully that all makes sense!
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I close in partials. Meaning I TP at a variety of resistance/support levels. Like this I secure money into my account, while letting the rest open on BE for a potential bigger move. I am however a day trader/scalper, so I am ok with this.
I’m finding different rules for currency pairs of varying volatility also make sense.
EURUSD SEP 2021
That entire move is ~250 pips on the D1 chart. If I’m going to capture the whole move I’d have to have a 67 pips trailing stop to see I don’t get stopped out. Then again, having a tight trailing stop would ensure I get out on 20SEP (start of the 55.6 pip retracement). Would make sense to re-enter the trade after the close of the bullish candle near the SMA10 area
If I’m taking the route of the wider TS I’d probably want to adopt a hybrid approach. First instance of a significant slowdown in trend momentum (signified by the high tick volume candle after the exhaustion) I’d probably want to tighten that SL to prevent giving away a lot of pips.
There’s probably a better method if I observe the underlying H4 TF.
*Bollinger bands on SMA10 - Might be able to get a cleaner exit on the Bollinger 20 instead
GBPUSD MAR-MAY 2021
Entire move ~440 pips. An indicator/PA based system might not work for this trend, where price volatility is higher. S/R zonal entry/exits on the surface appear to make more sense in this instance.
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I’ve done that recently. Then immediately realised what I had done.
I’m currently working on a exit checklist.
However, perhaps it depends on one’s strategy and style…
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Absolutely right. As a veteran trader once said to me, random exits mean random profits. This is the most difficult question in trading.
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P.S
8amGMT Nasdaq perfik
or Dax
And the problem is, exit strategies are just as random as entries. Sometimes your entry strategy works, sometimes your exit strategy works.
You close at your signal and price reverses. Do it again and price keeps going.
If you’re following your strategy, you’re doing things right.
Just because price kept going after you closed, it means you missed out on profits, it doesn’t mean you were wrong.
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maybe dushimes even the “greatest” traders have to accept at times its in the lap of the gods lol
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