Today I setup a buy trade on GBPUSD with 5 minutes time frame. Yesterday market was bullish and today Tokyo market time it was in side ways. I plan to take a buy trade because price is above the 200 MA and market is in bullish mode from yesterday. So I assume the same trend will be continue.
There is a double bottom forms near to the 200 MA. It is the sign to take the buy trade. Also I am using 75 MA and 21 EMA for analyze the market.
I forget to tell one thing. I am using New York time on my chart. (UTC - 4). Please see the below image. I took the buy order at close of the 3.35 candle.
Where you can place the stop loss?
Here I use the fibonacci lines to put the stop loss. The market was in bullish. I draw the fibonacci lines from low previous day to high previous day. For this trade I put the stop loss 1 pip under the 0.382 fibonacci line. Today market was took lower high and turn bearish.
On forex trading losses are part of the game. Follow the trend market will give better opportunities to win the trades.