GBP/USD
I was looking to run this as a breakout trade, so I set a buy order a little bit above the 2nd resistance line of the day. If done, then the stop would be set at 0.25% below the resistance line to stop sellers testing the line temporarily.
All good I thought…the price rose, order was actioned but after a shortwhile of trading, the price jumped massively back down again and hit my stop.
The first arrow on the left marks the point where I thought if it hits that high then that would be a good spot to buy as it should have momentum by that point.
The 2nd arrow marks where the price pushed above the yellow resistance line (pivot point) and the 3rd arrow is where the price was pushed bacj down again hitting my stop.
Any thoughts?
24-Mar-09 16:59 6742025 X GBP/USD Rolling Daily Buy 1 GBP 1.4774
24-Mar-09 17:33 6742420 X GBP/USD Rolling Daily Sell 1 GBP 1.4716
ah ok i understand sorry i thought you were just using them 2 yellow line as gospal
you can use support and resistance in any period, i personallly would probabbly fails to spot support and resistance trends on a 1 hour chart thoe if you are a daily trader, thats only personal opinion, dont foreget we all see diffrent thing even we are looking at the same chart (hehe)
Do you think the entry was ok in an uptrend if trading the S&R lines. All the indicators were pointing to a buy + the trend but it went down.
Can’t help but feeling I did something wrong.
Maybe I should move to trading daily as the moves are easier to see
this is how i would be interprating the chart on support and resitance
i would be buying on the bottom red line going short on the top (using the trend ) i wouldnt be buying or selling anything unless i thought it the market had done a 180
Hmm…okay
That’s using the trendline as an S&R point though rather than the true S&R points which are always horizontal lines though isn’t it?
With yours, you are following the trend upwards and just making an entry when it’s at the bottom trendline.
I guess you’re doing day/week trading or not?
You mean you wouldn’t be trading at the moment because it’s in the middle of the trend?
Don’t you use pivots if you’re trading breakouts or are you doing something else like master candles?
Doesn’t the candle closing in my image suggest that the breakout has gone beyond the resistance level though? I think I should have waited until another candle completely formed outside the line.
i stoped using indicator because they weren’t doing me justice
this is how i roll
i am fortunate do be in gmt time zone
i trade GBP/USD
i simply draw 4 lines
2 across the asian highs and lows for the night between 04:55 20:55
the i draws 2 more line one across the highs the 2nd acroos the lows
i setup 1 pending order to go long 5 pips above the high and a short order 5 pips below the lows of the night
i missed the 1st trade this morning, however i got 3 longs totalling 75 pips for today
i did not get any shorts for today
normallly i trade untill 12:00 only but i extended it to day as i could see the opotunity for 1 more trade so i took it
i set trailing stops accodonally increasing as i get mor into profit but i genrally set the stop loss to break even as soon i get 10 pips in profit
my intial stop loss is normall set 10 pips below the red over night high or visa versa to give the trade some room to breath
once the pending orders are set if i want to just leave the computer i will normally set a standard tailing stop of 15 pips but that if im not sitting ontop of the computer
it,s normall good for 25% of the trade ,movement, so if over there is a 100 pip spike i will set a 15 pip trailer, but dont forget this is only if im not sitting at the computer, i dont really like leaving thing to fate
when im manually trading i dont use trailing stops i adjust my stoploss acordingly
to be honest there arnt many systems i would trust with my money while im not there, this one however works just fine and id rather take 25% of something that a 100% of nothing i trade full time so im not usrually away so that just what i think works but certainly i would probbly change it if i wasnt able to trade full time.
It’s definitely an idea for when leaving trades open overnight.
I normally adjust my stop loss up during the day so I can take profit even if the worst happens but I usually set it above/below resistance/support points.
Surely at 15 pips the trade will shut pretty quick. I mean that doesn’t even cover most hourly high to low ranges does it? Even a 100 pip move over the whole day goes back and forth
I’m guessing something like EURGBP and GBPUSD don’t move much when their respective forex’s are shut?
Just a note in general, you bought after a 400+ pip breakout, study your currency pair… GU tends to move in 200 pip increments… When it goes beyond that, you need to be pretty cautious in your trading, and after a BO, i would have been looking for a short entry or a retrace to buy on the “dip”…
Alot of people were stopped out yesterday so don’t feel bad…
