Hello traders. I would like to share a concept with you of using a dynamic stop loss which means that for every trade I make, I set a different stop loss in terms of pips. Let us see an example. On the five minute chart, which I trade ,looking to go long (since higher time frame indicates bullish momentum and trend)
I wait for a new close above the previous high and look at the ATR indicator (average true range). Lets say the ATR is 10 pips. I will place a stop loss under the previous low and a limit order to buy at + 10 pips from my stop loss. Now I just wait and see if it gets filled. I haven’t ever seen a similar way of using ATR with stop loss and limit order. Any thoughts and input are appreciated.
I bookmarked this thread a while back. Might be help to you.
I look at ATR but have switch more to market structure. It’s not an exact science, still working on it.
Sounds OK but why wouldn’t you also go long at the close above the previous high?
Thanks for the thread
I prefer to wait for pullbacks back the “value” even if the fill isn’t guaranteed. That means tighter stop loss from entry with bigger profit potential in smaller distances.
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Hi, can you tell us more about you? how long you trade? Regards Greg
Hi Greg.
I am new to this forum.
Been demo trading forex and some commodities the past few years. I have some college background in Finance. I have done some backtesting using Motivewave. Still in learning phase. I have read a bunch of books on trading over the years. I aspire to become successful just like everyone else. This is a tough business which I didn’t realise 10 years ago when I started studying it. All the best, Kyriakos
Όλα χρειάζονται περισσότερο χρόνο για να μάθουν από ό,τι περιμένουν οι άνθρωποι
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Όντως. Excuse my Greek for non Greek people.