New Trading Idea

Samh1988

Newbie
3 0
Hi there,

This is my 1st time posting in this forum and would really just like some advice on how to place stops on the following trade idea:

http://i1361.photobucket.com/albums/r677/samh19881/GBPUSD_zpsbc9471b3.jpg

Basically this is the GBP/USD weekly chart.
The trades are based on when there is a cross over on the extreme of the stoch (this is shown by the dashed black lines).

I just really needed to know the best way to place stops for this idea?

Thanks

Sam
 
Last edited:
M

member275544

0 0
Hi there,

This is my 1st time posting in this forum and would really just like some advice on how to place stops on the following trade idea:

http://i1361.photobucket.com/albums/r677/samh19881/GBPUSD_zpsbc9471b3.jpg

Basically this is the GBP/USD weekly chart.
The trades are based on when there is a cross over on the extreme of the stoch (this is shown by the dashed black lines).

I just really needed to know the best way to place stops for this idea?

Thanks

Sam

Would the best place not be the low prior to the stoch cross? Just in case the cross doesn't lead to anything and starts going downward..
 

Shakone

Senior member
2,458 665
Hi there,

This is my 1st time posting in this forum and would really just like some advice on how to place stops on the following trade idea:

http://i1361.photobucket.com/albums/r677/samh19881/GBPUSD_zpsbc9471b3.jpg

Basically this is the GBP/USD weekly chart.
The trades are based on when there is a cross over on the extreme of the stoch (this is shown by the dashed black lines).

I just really needed to know the best way to place stops for this idea?

Thanks

Sam

So are you short from that most recent vertical dotted line?
 

Samh1988

Newbie
3 0
Hi everyone, thank you for your replies.

I have not yet traded this idea, I am back testing it first.

I thought about putting the stop just above the previous weekly bar. Sometimes this works but other times price would quickly stop me out and then move back in the right direction.

I am aiming to get a wide enough stop not to be stopped out, whilst also maximizing the risk to reward of the trade.

Thanks guys
 
M

member275544

0 0
Hi everyone, thank you for your replies.

I have not yet traded this idea, I am back testing it first.

I thought about putting the stop just above the previous weekly bar. Sometimes this works but other times price would quickly stop me out and then move back in the right direction.

if it quickly stops you out, then I dont think the stop is the wrong place (ie the last pivot low) but perhaps your entry is too soon and you haven't given the trade long enough to confirm its direction.
Just a thought
 

Samh1988

Newbie
3 0
if it quickly stops you out, then I dont think the stop is the wrong place (ie the last pivot low) but perhaps your entry is too soon and you haven't given the trade long enough to confirm its direction.
Just a thought

Thank you malaguti, so perhaps I should wait for the stochs to diverge more first?
 
 
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