The last several trades I have put in on the GBP/CHF pair have been stopped out by crazy long wicks. How do I prevent this? My friend told me to check the BID and ASK page when making the short and buy but it doesn’t seem to help.
Thanks!
This last one was an 18.5 pip wick!
In this one I entered on a crazy wick
Apart from the two candles in the centre of your chart above, it appears that the one on the far left also has a pretty long lower wick (truncated on your chart)? So that makes at least 3 candles out of the 9 you’ve shown that looked “volatile”.
Without seeing the scales on the chart, and more of the chart, and knowing the general background, it’s not easy to say a lot more productively, but I’m instinctively wondering whether this was just a “volatile market” that one might choose either not to trade, or to trade with wide stops, to allow for this?
Trading the first of the two candles shown in the centre of your chart as a pin-bar, entering short on either the close of the bar or the break of its low, with a stop a pip or two above its high, would presumably have been an unpleasant loser? But, again, without context it’s hard to comment further.
(One other little comment, in case it helps: be aware that whereas highs and lows are objective and factual, wick-lengths are subjective, interpretative and user-defined in the sense that if you had set up your charts only [I]slightly[/I] differently, they could easily look [I]completely[/I] different.)
Yes, you could let the stop trigger, then re-enter if your original TA is still valid (as in this case) - but this demands continuous screen-watching at least until the danger period has passed. The cost of entry, stop, re-entry should not be too great.
However, suppose the stopping bar had not been a pin bar like your entry bar. Then your original TA would have been invalidated as it was based on a single bar only. Regardless of time-frame, I can’t think that’s a resilient strategy. Only a tiny percentage of variation from where you thought price would reach/not reach and your whole basis of the trade is sunk. I’m not advocating pushing the stop further out per se, just a more robust TA to support your entry.
Its not quite clear where are stop loss levels, timeframe and time of trading.
I guess its asian session and 1M chart and you was stopped trying scalping.
Unfortunately its common thing in trading. One recommendation to avoid is to pick smaller lot size and higher timeframe while using wider SL level
Sorry, It was the one hour on the GBP/CHF. So it is just a sign of very volatile markets and I need wider trades than normal?
Was there any big news releases around the time of that wick?
I guess so. Or just take it as it is and move ahead. Because it will happen anyway and breaking your system rules will result in more evil than in benefits.