I have had bad sucess trading support and resistence on lower time frames like 5-15-1hr etc; so i thought i would try 4hr instead. What do you think my tp and sl should be on this trade (in pips)?
Im thinking about 30 pips take profit 60 pip stop loss but i dont know.
This is the first time trading on this time frame.
Just entered long
Your stop-loss is bigger than your take-profit. With that risk/reward ratio (assuming you used it on other trades too), you would need to win 66% of your trades just to break even.
Obviously you can use lower ratios but the bare minimum that I would look at would be 1:1 but I’m unlikely to even use that.
I agree with baz here your risk to reward is backwards and will generally lead to destruction of your account.
Now if I was taking this trade (assuming we are on a valid support level is actually a good looking entry) I would have my SL @ .79810. I would look to take partial profits at about .80360 with a final TP @ .80690 trailing my stop up along the way.
Is it not possible to hit a 80-90% success rate with trades though? surely @ 1.5 you and winning 8/10 trades you would be very profitable? thanks
It is not that it is not possible but very unlikely. You would also have to hit 80-90% to barely be profitable. When if you just flipped the R:R around and was 80-90% right you would be extremely profitable in forex.
Ok i might try trading with a 2;1 ratio instead
With a 2:1 ratio you can lose 50% of your trades & still be in profit so it’s definitely the better option.
Don’t quote me and correct me if i’m wrong. I’m just a beginner.
I cannot answer your question, but I think you should consider multiple timeframe analysis. Work your way down from the biggest timeframes, and maybe things will go better. From what I see, you have placed a long order right after the upward trendline break:
I don’t know whether it’s part of your strategy or not, but I hope it will help 
Well spotted however… even though that has broke, what else is there to say that will continue to go down? that daily candle could soon shoot up back into the support range. Just my two cents
You actually only have to win 33% of your trades if your Take-Profit is double your risk.
P&L = $0.00
The formula is [B](Number of Wins)/(Total Number of Trades)[/B] or [B]1/3[/B] in this instance.
Depending on the size of your risk and associated take profit though, the real break-even point is usually going to be somewhere between 34% and 35% win in order to break even because of the spread or commission.
I know, however I wasn’t speaking about breaking even in this instance; I just thought that 50% is just a nice round figure to say, “Using a 2:1 risk/reward ratio, it doesn’t matter if you lose half of your trades, you will still be in profit & therefore successful”.
