When I want to enter a trade, lets say a BUY trade for this example, I like to place my order to buy just ABOVE the previous day’s bar’s high and my stop loss just BELOW the previous day’s low.
When I’m trading forex, is there a “rule” for how many pips above/below I should do this? I know everyone is different, but what is a “standard” number of pips for doing this while trading forex (if there is such a thing)?
Thanks!
There is no uniform standard. I have heard people say the allowance should be 1 pip, or 2 pips or 3 pips.
You could always find your own allowance distance by trial and error. You could start this project with your own objective standard - such as always 3 pips, or one-tenth of the stop-loss distance, or one-tenth of ATR14, etc. etc.
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Thank you.
As tommor said. My favouruite indicator is PSAR balls - set at 0.09 - 0.50 - to manually place my S/L at a convenient spot on the chart which is above or below a chosen ball area.
Actually seeing where the price could hit and comparing it to what happened before on the wave patterns is a far more accurate method of determining the most probable likelihood how price movement would go. While it is a lagging indicator the above setting is one 1m - 15m TF lagging candle on most pairs.
Like the others said theres no strict rule and and like steve369 said im also a fan of PSAR indicator. 
My experience with PSAR has not been really good. Many a times I get reversal signals when the price has not even technically reversed. And I’ve noticed that sometimes it generates very poor quality signals.
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I haven’t tried it, but thanks for your feedback.
There was a no rule, it depends on your strategy
What TF do you use?