I have a bullish candle with the follow OHLC
O: 1.09034
H: 1.09229
L: 1.09014
C: 1.09201
If I am to enter a trade at this price point what would be my entry price?
How long do you plan to hold the trade?
Even though it’s a bullish candle what is the trend? Bullish or bearish?
Might want to put up a chart as well.
You can only enter at C because the others have passed you by while you were awaiting a bullish candle… You definitely need more info to enter the trade…
Can’t identify a trade on the OHLC data for one single candle.
O: 0.97763
H: 0.97768
L: 0.97718
C: 0.97740
Here is a screenshot, for this trade I am riding the downtrend for a sell trade.
How do I know my entry price?
Let also say I want to set a Take Profit of 5 pips and Stop Loss of 10 pip, which of the OHCL parameters do I use in calculating them respectively?
O: 0.97763
H: 0.97768
L: 0.97718
C: 0.97740
Here is a screenshot, for this trade I am riding the downtrend for a sell trade.
How do I know my entry price?
Let also say I want to set a Take Profit of 5 pips and Stop Loss of 10 pip, which of the OHCL parameters do I use in calculating them respectively?
O: 0.97763
H: 0.97768
L: 0.97718
C: 0.97740
Here is a screenshot, for this trade I am riding the downtrend for a sell trade.
How do I kn
ow my entry price ?Let also say I want to set a Take Profit of 5 pips and Stop Loss of 10 pip, which of the OHCL parameters do I use in calculating them respectively ?
Hi, you need to research, which entry point will be the best for this strategy. OHLC is information about candle. Regards Greg
Although price is falling, the downward movement so far is limited. There has been a single candle closed below the prior price action, which many break-out traders would use to go short. Both MA’s are also sloping downwards, which is bearish, though the trend is not well established is confirmed by the faster MA being still above the slower, which is not bearish.
Worst of all, the 0900 candle has a long lower wick or tail, and an open and close very close together and close to the candle’s high. Some would call this a pin bar or hammer. The long lower wick shows that when price got to the low as seen, buyers stepped in and pushed price all the way back up to near the high of the bar. This is bullish: it means at least that price is unlikely to continue to fall as strongly as it has been, it might go sideways or up, but an immediate strong downward move is unlikely.
Maybe the 0900 bar is not yet finished printing, in which case, wait for the situation to become clearer.
You mention using a 5 pip TP and a 10 pip SL. This gives a risk:reward of 2:1, meaning you are risking 10 pips to gain 5: few strategies are profitable on this basis. In any case, a SL is better identified using the TA available, rather than a random round number.
Using such small pip distances to SL and TP means that spread between buy and sell prices (ask and bid) become very significant. If the spread is, say 2 pips, that you will need to add 2 pips to the sell price in order to know what will be the buy price, the exit price for this short. So, instead of price only having to fall 5 pips for you to reach your TP,it would need to fall 7. And if it only fell 6 pips, your TP would not be triggered at all.
This is not a trend-following trade, its a break-out trade. the break-out has been signalled by the lower close but cancelled by the pin bar. Wait for a clearer signal. Or move to trend-following.