Hi All, I’m a newbie and going through the school of pipsology, and demo trading as I learn and read. I look at the 4H and 1H time frames but having a hard time to set a stop loss based on the 4H and 1H ATR or volatility in the market milk tool.
For example I’m going long at the lower channel (bullish trend) for CAD/USD. The following are the ATR: 1D - 47 pips, 4H - 21 pips, 1H - 10 pips. I fee like the 4H and 1H pips are to narrow and will definitely get stopped. By using 1D ATR, I’m limiting my risk to reward ratio to 1.5:1 or 1.8:1, maybe 2:1 and not the recommended 3:1. I set losses below key support level into consideration when setting my losses.
A FX pair at support or resistance can move 1D worth of pips even though looking at 1H or 4H. How do experienced traders set stop losses for 1H /4H time frames?