For a couple days price was struggling to get past 1.5150. It finally broke loose, spiked up, and the high was rejected, which is illustrated by the pin bar. The candle afterwards was of the most interest to me. It shot down blasting through fib lines but eventually pulled back as profits were taken and stop losses were hit. The momentum continued down and back to the 100.0 line.
The 100.0 line is also a huge psych line as it’s at the 1.5000. A nice round number to keep an eye on. If it breaks and closes below 1.5000, I plan to enter 10 pips below the low of the candle and ride it down to the 161.8 line or until price tells me a different tale.
Price wasn’t ready to move down yet and it retraced. I pulled out with a 30 pip loss. It doesn’t pay to wait for price to go where you want it to go. It might not ever.
I drew a trend-line but was away getting my 9 month old twin daughters’ pictures taken while price continued to retrace. Now we are back to where we were before.
After a new low, I re-drew Fibonacci lines. Seeing that price bounced off the 38.2, this is looking to be a weak retrace and that the downtrend will continue. However, price now needs to break the 1.5000 mark again and it’s sitting right on another fib line.
Isn’t is kinda amazing how price works around Fibonacci?
As I’m watching it now, the candle just closed a tad bit below 1.5000. So now we wait to see if the next candle wants to continue on down. I’m wanting it to drop about 10-15 pips down before I get in. I might even zoom into a 15 minute candle to get a better idea of what price is doing around this resistance line.
My profit target will be around the prior low unless price action dictates otherwise.
A common question that’s asked by a lot of traders is when to take profit. Anytime you are in a trade you should have an idea where price should go. However, price doesn’t always go the direction you want it to go.
You can always get back into a trade. Remember that. It’ll only cost you the spread to get back in.
So when should you take profit? When price stalls and you are ahead in pips. Sometimes I’ll zoom in on the 15 min for a re-entry. Other times I’ll just be content with the pips I’ve taken.
Now the tricky part is getting over the anxiousness of trading and eliminating fear. Fear can drive one to take profit too early. Just because price dances a bit, doesn’t mean it’s not poised to go in the direction you want it. Don’t always be so quick to pull out.
Love to break even. Get down on your knees and tell B/E how much you love it. I am not kidding.
Breaking even will increase your profitability. How many times have you been up in pips just to watch price go back the other way and continue on to your stop loss.
I like to enter a trade about 10 pips after the high or low of a candle. That way it clears a lot of false breaks and I’ll catch a bit of the momentum from the break. A lot of times however, the break doesn’t last long and price does continue to head back.
So generally I’ll move my stop to break even when I’m between 10-20 pips up.
We all enter a trade waiting for the big hit. Where price just flies downward and we’re reaping in a sweet amount of pips. However, we have to wait for that to happen. And while we wait we need to protect our bankroll as much as we possibly can.
How often do you hear a trader say, “Yeah, I had a great start of the day. I was up 100 pips, but lost it all back.”
This trader was not protecting their bankroll. They were not eliminating potential losses because they weren’t moving their stop to break even.
Get to be good friends with Break Even, and he’ll reward you with healthy profits.
And if you want to give yourself a bit of a raise, lock in one pip of profit.
I wish I wasn’t asleep when g/u decided to take off, but I am up 107 pips with the us/cad. Trading the 1hr TF is definitely helping me out, keeping me out of alot of fakeouts, and making me be patient, waiting for the right trade.
man this was a fakeout week wasnt it, i was short the cable on that break just to watch it come back, but i didnt lose anything as i put stop to lock in a couple pips, that really is a good idea, once up 20 or even less sometimes, to put stop to breakeven, yes you get stopped more often but the thought of you never know is even worse then breakeven, why lose when you dont have to
Don’t hesitate to post charts about your trades. I’d love to see how you guys are implementing what you’re learning here.
But now here’s the challenge. You’re up 107 pips. Now, you can never lose those 107 pips. From here on out your goal is to protect those pips and only add to them as much as you possibly can.
At any given day a trader can make the decision to be profitable from here on out. It’s just a matter of learning to protect their bankroll at all costs.
Yeah it can get frustrating when everything is poised to go in the direction you think it is, but then it fails to do so. And as you referred to, thus the important of solid money management. Your trading strategy is geared to help you earn pips. Your money management is gear to protecting those pips at all costs.
I was watching the us/cad as I saw it near the bottom of the fib a few times, but didn’t break through, but it was still looking to be in a downtrend, so when it did finally break through, where I drew the yellow arrow thats where I got in, where the green dotted line is, the oarnge dotted line is my trailing stop, and I have my TP set at 1.1375. The reason for that TP is I had another fib drawn from the 4H TF of the low of apr 16th to the high of apr 21st. Will it actually go to my TP, I don’t know, thats why I have a 25 pip trailing stop. either way I will be making some good pips with this trade. How do I post the picture in the post without having to click on it?
Be mindful of your trend-line. Price had been retracing off that line. It could just as well happen again. At this point I personally would have set my profit target a bit above the trend-line.
Remember you can always get back in the trade.
Let price do it’s retrace, and now you can get back in higher than you were before and will price moving back down you’ll rack up some additional pips in that process as opposed to just sitting and riding out the retracement.
I see what you meen about taking my profit at the trend line, if it continues like it has been then it should definitely retrace some before going down again, thanks for pointing this out. I didn’t understand what you meant at first until I stared at the chart for a little bit and it finally clicked in my head what you were saying lol, thanks for your help, your really helping me understand things better.
Hey, where are you? I haven’t seen any trades recently and wondering if you have switched strategies or just laying low. Can’t say that I have set the forex world on fire, the markets lately have been hard for me to judge. d.
Price has been dropping for the last couple days. I was thinking it was going to bounce off 130.0 today, but price cleared right through that. So I waited for the retracement. Price finally bounced off 129.0. A nice engulfing pattern shown on the 1HR signaling a possible reversal.
Eyeballing a trend-line it appears to have been broken and price closed above it. Price is a bit stuck between the 129.50 psych line, the trend-line that should now start acting as support and the 23.6 line.
A conservative trader should wait until price starts moving above 129.50 and past the 23.6 line before making a move.
