You always should manage you trades based on the TF where the setup was formed.
The rule is - if you saw the 4h TF setup you set the Entry, SL and Targets based on 4h chart only(the same for 8h,1h etc.).
The only thing you are using from bigger TF are Support and Resistance lines.
If you saw a A+ setup on 4h chart it means that this is a A+ setup for this specific TF only and in most of the cases if you switch to daily you will notice there is no setup at all so why should you set your TP on the daily :33: ?
I did take this trade, and I noticed what you were talking about on the lower TF. The only thing that concerns me are the lower highs price had formed, but I donāt really see any bearish momentum and I think the level and signals are obvious enough to be confident in.
Iād love to hear some more opinions on this as well.
good question Pipping and good post for us all to look at and discuss.
There are a few major problems with this pin bar that traders who have been hanging around in this thread would spot in a flash.
The major worry is a point that we tend to go on and on about with pin bars which is that it does not form at a swing low after a pull-back and the reason we go and on and on about pullbacks and swing points with pin bars is because when pins form without the correct swings they have a win rate overall that would be something pretty low. This pin here has one bearish candle and then the pin.
The next thing is whilst the pin is rejecting the resistance, it is not sticking out and away from all other price. It is there with all the other price. The good pins are either up at the high or down at the low and stick out like beacons rejecting either support or resistance. This was just hanging there waiting to be run-over.
Very lastly and possibly most importantly for those traders who already know the above points; it does not matter how many pins we have, adding another does not making it any more powerful. We could have 20 pins in a row, it does not make it any more high probability than the first pin bar. Each trade is separate and needs to be treated as so.
Couple of pin-bars formed over the past few trading days, so Iāve gone Long NZDJPY
Pair: Long NZDJPY
Entry: 88.478+0.05 = 88.483
Stop: 87.510
FRA: 88.892
TP1: 88.892
Notes: Conservative trade due to Easter break --> low volatility
Due to Easter low volatility, will take full profit as soon as itās available.
Hi everybody !
A newbie question about this NZDJPYtrade, is it really a good trade when the risk reward is 3 to1?
Or an i wrong here
Hope to learn , thx
/Daniel
itās not a trade for me , look at the market , itās really choppy market , nzd/jpy is consolidate .
There is no trade for me now , iām looking for more volatility market and a better price action .
I agree the Pin is pretty small and doesnāt really stick out from the pack. Price could bust either way right now. I will wait for a more definitive move before deciding to go short or long on this pair.
Let me explain my thoughts as to the risk reward ratio,
It can not be just a simple anwser āGoodā or āNot Goodā trade when your RR ( Risk-Reward) ratio is 3 to 1.
For example : you always taking trades with 3 to 1 RR ratio, this mean you have to win 75% of all your trades in order to be at Brake Even (BE) or zero over the time.
You lost one trade with SL of 60 pips, this mean you have to win three trades of 20 pips ( RR is 3to1) which is 75% (3 out of 4) of your trades in order to get zero.
So if you always trade with 3 to 1 RRR your win rate have to be more than 75% in order to make money. It possible, but very hard to reach, especially at the beginning.
But , there is other side of a coin.
Letās say after a few years of expirience you mastered different kinds of setups you trade with and each one of them have different win rate, this mean different RRR can be used for each setup. These few years of expirience vary from trader to trader, it can be 3, 5 or 10 years.
Thus, i think for begginers it better to aim for at least 1:1 RRR as long as they donāt have enough trades/statistics to identify the win rate for each setup they trade.
Thanx a lot for the explain ArthurVR:)
To win 75% of the trades seems a bit difficult so I have decide that 1:1 ratio is the minimum for me.
Love this thread!
When you say a R:R Iām assuming that what you [I]meant[/I] is that if your stop was say 20 pips you are aiming to have a winning trade of 60 pips? If that is the case you are on the right track.
If as Arthur points out you are willing to run a 60 pip stop to have a winning trade of only 20 pips then yes you might want to rethink your strategy.
[QUOTE=āDanielvs;622747ā]Hi again! Anyone follow USDCHF H4 and EURJPY H4 right now? Looks like possible trades? Engulfing bar in the right direction Any reflections? //Daniel[/QUOTE]
I do not see anything on neither of the charts. Could you elaborate with graphs. Cheers
