I closed my EURNZD trade because it closed conspicuously
below the 20. I lost 40 pips in order to prevent a potential
but today it is moving up again and it might close back up
Was I right or wrong to close the trade?
When is the tipping point, the point of no return?
You can allow hundreds of pips leeway only to find price
has actually reversed on you
Or, like Big E you can get out as soon as things start
to look bad, with a view to re entry if price returns
to the desired direction
So there will be many small losses, a policy of
I think it has merit providing it is not merely a knee jerk policy
governed by panic attack
Maybe, if you close when price closes beyond the respective MA
that it was supposed to be respecting but evidently no longer is,
then re enter if price closes back again beyond the MA in the
another possibility is my excellent trend strength indicator
if one of the thee lines changes colour at close of candle, it
is a very bad sign, and that could be the indication to get out
especially if price has closed beyond the respective MA
or just allowing plenty of leeway to even beyond next weekly S/R
might result in a very high win rate.
In the end both approaches might yield similar pippage and the
most important thing is to remain systematic