Guys I have faced this question in another forum
there were no answer on that
so i bring it here to hear yours
What are the various techniques for managing risk and setting stop-loss levels based on price action analysis in forex?
my only answer to this is terribly simple (perhaps too simple to interest anyone, really!): i put the stop loss just beyond the most recently formed swing high/low and work out the position-size in accordance with my fixed risk-per-trade in inverse proportion to the stop-loss distance, and then trail the SL manually just above/below each new swing high/low if the price moves in my direction
i’m almost tempted to ask “is there another way?” lol …
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The best technique coms from the same TA you would carry out to identify a trade opportunity. I find this is easiest using orders, not entering live. Trading success is more about owning than buying.
Whatever pattern I prefer to use to buy - because price has been rising - I want to see price rise through a given point. This might be the high of a candle, or a trend channel boundary, or a resistance level or a MA. But its easy to visualise the chart showing a range - if price breaks the high of the range you would want to be long: if it stays in the middle you would want to be flat but you could have either a buy order set or a sell order set or both or neither: if it drops through the bottom, you would definitely not want to be long.
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You are looking at this wrongly. It’s far more important to set your T/P based on order flow price action. I use PSAR 0.09 - 0.50 setting and let the little balls follow above and below the candles on my charts.
When I have found a S&R zone - which might be just a few candles - I know where to place both my T/P, and then the S/L which should give my trade breathing space which is my risk exposure.
I cannnot stress too much that these little balls give me a chart picture that is so easy to follow.