In this case, and most cases, I will let it run until it hits my TP level. When we trade we try to take profit at the next major S/R level. The problem is that most people put their TP on the farthest possible area of the S/R zone to try and squeeze as many pips out as possible. I will put my TP somewhere it in middle of the S/R area, since there is a higher chance of it being hit just by giving up a couple pips. If I don’t shoot for the farthest possible spot to take profit, I won’t mind letting it run even if it gets close and stalls since I am already giving up some pips for a higher probable TP area. I am actually in that situation right now. I entered a trade last night and am about 10 pips away from TP but price is stalling.
You want to give up a few pips to make sure your TP isn’t set to aggressively but you don’t want to get into the habit if taking profit before price ever reaches the S/R zone than your TP is placed at. Giving up 20-30 pips or more on your winners will really start to add up and hurt you in the long run. If you are trading the correct levels with solid price action setups, I wouldn’t worry too much about price stalling before your TP. Price rarely moves strong from 1 S/R level to the next, you usually have stalling, consolidating and sometimes retracement from your entry to TP.
I certainly have that on my list to talk about, but I can’t promise it will be soon. Trading without TP levels can be difficult, and can be quite different than letting your trade run until it hits your preset TP area. Once traders start getting active with their trades, they tend to over trade, over analyze and over stress about their trades. It may end up completely ruining a good thing they had going. With that being said, with the right education about it, it can be done correctly and profitably! I want to make sure we lay down all of the basics here and that traders get good at passively trading which is basically set your TP level and don’t touch the trade until it gets stopped out or hits profit. To be honest, most of my trades are passive and I won’t take a non TP trade unless it fits a certain criteria and I know I will have the free time to actively watch and manage the trade.
If you hang around long enough you will see an article about it
Also the same problem here, and I’m still on a demo account haha. It’s funny because if I have a plan in place and I’m currently in the negative I have no problem trusting my plan and letting it run, but once I hit a decent profit I’ll want to close out my position, or a portion of it (which I did on EUR/JPY this morning) and not trust in my initial take profit plan. Does anyone have any advise, articles or books on this mental subject?
I did want to point out though that there is a type of trading that falls between passive and active that may be appropriate to talk about in the near future. It is essentially setting a hard TP but also finding minor S/R areas and watching for price action that would form against your trade. This type of trading has saved me from countless losses in the past.
Just hit TP on my 3rd consecutive win for the new year on the USDCHF. I was able to achieve a 1:3 RR and take 4% profits. I will post full analysis sometime later today.
Did anyone else happen to take this trade, if so please post charts with SL/Entry/TP
Great trade! You got in at the absolute best possible area. I also got in on the retrace where you entered. If you decide to let it run please let us know how it goes and a short synapsis of the trade if possible. Best of trading to you!
hi guys, theres a possible flag on EURJPY H4 that i have a few questions about, firstly its broken the top of the flag and now seems to be retesting it. at the moment its forming a PB, not massive but still PB for now, does this invalidate it? and secondly have i marked it out correctly i.e is it even a flag? and thirdly if it is valid which candle would you take entry from?
I would wait a little longer for a more significant break and retest. On the daily, it just looks like it is rejecting the upper trend line. I wouldn’t trade it right now because it looks neutral to me (it could go either way). Know that S/R levels, whether they’re horizontal or trend lines, are never concrete. Price can reversals can deviate from that line and still stay within the general trend/confluence.
Someone had posted this a while back before it had broken out and I forgot all about it. I redrew the flag and the trend line angles are within tolerance but it would be nice to see it a little cleaner. With that aside, from what I can see price has officially broken the flags upper trend, pull back to retest, and price has denied the trend line. If you do take the trade what would your tp be, top of flag, half of the flagpole or the whole flagpole distance?
I think that’s a good middle of the road choice between bagging on good profits and picking TP areas that have a good chance of being hit.
I wouldn’t worry about price being extended. Any time you have a good flag pattern the pole will look like extended price, but setting TP as the full length of the flagpole is still widely done and has a good chance of success.
Understood…and it would be good to know your criteria for when you decide to take a passive trade and when you decide to actively manage a trade…Thanks Aaron.
when you say reaching no man’s land - do you mean you look out for a confirmed close into no man’s land before trying to actively manage the trade? Thx
If my next take profit area is the high/low for the past year or two, and any break beyond that meant current price is setting new multi-year highs/lows.
I have seen volume on some of your charts posted in this forum. The Bank for Int’l Settlements estimated volume at $5.3 TRILLION/day last year, which is why we like this market right !!!
But is volume able to be tracked in the forex market so a trader can use it for accurate analysis?
its the strongest Daily pinbar we’ve have in months in this pair, however it has to downsides: 1st) is countertrend 2nd) it didnt close within previous bar
[QUOTE=“cheva282;592956”]Anybody looking to short USDCAD D1 Pinbar?
its the strongest Daily pinbar we’ve have in months in this pair, however it has to downsides: 1st) is countertrend 2nd) it didnt close within previous bar[/QUOTE]
Hey Cheva
I’ve checked it out and whilst it may work out its not for me, if you zoom out you can see that it isn’t piercing any RS line as far as I’m concerned and also against trend. The only one I’m considering is the EURGBP 4hr pin but I don’t like the 2br on the daily. Mind you the risk vs reward is excellent!
