Hi all,
I am new here and new to Forex Trading. I hope that you will be able to help me understand some questions I have regarding my trading. I seem not to be able to understand it fully :rolleyes:
My first question is regarding stop loss.
I had some open posts in AUD/CAD, and since it was way past bedtime, I decided that I would let it run until after I had gotten a few hours sleep. I therefore set a stop loss to make sure that it would not get out of control and went to bed. When I woke up I noticed that the stop loss had been triggered, but when I took a closer look I just could not understand what had happend. Perhaps some of you might enlight me so that I may understand what triggered the stop loss.
I set stop loss at 0,87982, but when I look at the top shadow of the candlelight that seem to have triggered the stop loss, it seems like it has got its top at 0,87968.
Perhaps someone could help me understand what happend as I thought that the shadow had to go pass the value that you have set the stop loss function at. Or maybe it did, but I am looking at it the wrong way.
Iâve had this problem too, as I use Oanda too. To check about whether it really hit it or not, go to the Min/Max instead of candlesticks.
When i contacted support about it, they stated that candlesticks were just an average price, and that the Min/Max would be more exact. Once I did this, I saw that I had been wrong.
this happens to me every rare occasion. usually you are correct though it should not have exited you out being that you set your stop loss roughly 2 pips higher than the price move.
2 things will do this. one is lag in the prices, if the market is slow it sometimes will exit if the entry is close enough to activate your stop loss.(2-3 pips) This is a problem with some trailing stopâs also. for instance if you set a trailing stop at 10 pips. if the market reverses within about 2-3 pips before it has any gain it will âignoreâ your order and keep the trade open even though it should have exited after it went sour 10 pips.
this happens with take profits too. sometimes it does this on those orders too. but usually when you trade live they do their best to protect you on these issues.
i hope that answers your questionâŚ
all in all just keep in mind that within about 3 pips it might exit.
as you were in a sell trade the SL is placed at the buy price.
so looking at your chart the aud/cad has about 8pips spread.
The charts always show the sell price. So on the chart when price was at 0.87968 the top of the shadow the buy price at this stage would of been 8pips higher at 0.88048.
you trade would of been stopped when price on the chart was 8pips(spread)below your set SL. so price on the chart would need to be 0.87902 for your stop of 0.87982 to be hit.
if you go long the SL is the sell price so the price on the chart will be correctâŚ
hope it makes sense if notâŚthere spead difference between sell and buy has to be understood thats all
:rolleyes:
