In the picture shown below, I went short at the close of the 6th most recent candle. I set a stop-loss at the level shown by the red dotted line. As you can see, price never reached this level, yet my trade was terminated.
Any idea why this was?
Thanks
The price you have on your chart represents the sell price. You are stopped out of shorts on the buy price (which is higher by the spread).
It’s hard to read the chart, but it’s most likely the spread like golden member suggested.
Greetings JRC, I’m guessing it is the spread as well. Have you contacted your broker to see what they say?
Thanks for the help, I had no idea it worked like that.
JRC, recognized your chart, your sl got hit around 16.00gmt (London session close)
I suppose hindsight is great but your sl was right at mid Asian, not always a great place fo a sl.
If I’m day trading I always like to look to the high of the Asian for my sl on a short (7149), see how it was safe even this morning at London Open, didn’t give way until just now with the talking heads.
Was this on a demo account?
Yes, thankfully.
This is another example of trader starting to trade without taking the proper time to educate them about trading. You learned your lesson the hard way and I would view it as a few pips spend on education. Maybe you should make sure you know how trading works first before placing your next trade in order to avoid mistakes like this.
-Question asked: “Was this a demo account?”
-Question asked for this exact reason. Thanks TLB. +1 to your comment.
…Just being real here JRC.
Jake
JRC - your trade idea was excellent - you saw a down trend on the 1hr, using a falling channel - which is simply identifying downward momentum in the short term.
The small mistake made was the SL was smack in the centre of the Asian Range and entry just at the time price likes to re-visit that area - (just as it is trying it’s best to do now lol)
Momentum in cable is often best harnessed at London Open and usually fizzles out at New York Open.
