Your explanation is so clear, this makes complete sense. It's amazing how many trading video's I've watched whereby a strategy is being explained and they say "place your stop just below the recent swing low (or above recent high)" .. the amount of times I've been stopped out because of this, then price goes in my predicted direction is crazy. Once again, I thank you for your brilliant education.
I've been watching a hundred of videos from different channel,but I found out that your channel giving me more detail information about indicator and price action. Thanks a lot.
wider the stop smaller the position and higher it has to go before it even hits 1R. In my opinion it's better to wait for big money to take out all the stops then jump in with a tigher stop. Seeing a doji candle, hammer, or being able to read footprint can help with that.
@@Marvooo74 basically, if your risk to reward is 1:3, and you add the ATR to your stop loss, you'll need a higher move up in price to have the same risk to reward ratio.
isn't it better just to double the atr and put that number as a stop loss? for example if atr is showing 20.00 dollars we double it and it's 40.00 dollars, so we just put 40 dollars as our stop loss, or maybe I'm wrong?
Thanks a lot Labs for all you do. i use order blocks to place entries... so in my case most of the time before prices reach my order block a few candlesticks have formed mostly after the 14th candle too. so my SL will be 6 pips below the order block. so from the price of the SL do i use the ATR to its most recent value?
There's nothing wrong in being stopped by the stop-loss, especially in high volatility market. The trade you showed only means that your entry timing was off, nothing else. By widening your stop-loss you might get yourself in much deeper troubles than being "wicked out" on a single trade. If anything, you should refine you strategy, work on your timing or adjust indicators. Cheers!
An ATR can be used for your take profit also. Obviously you need to couple with other indicators to tell you when to enter but an ATR of 14 x 1, 2 or 3 is a much more fluid SL and will result in a dramatically increased trade success when compared with a rigid stop loss. When using an ATR your stop loss will be very tight during sideways markets. Much tighter than you might normally run them. Likewise your take profit ratio will reflect the current market conditions and likely result in a realistic small win. When the market becomes volatile both your SL and TP targets will adjust to these new conditions. Some traders tip the odds in their favor by running a 1.2 or 1.5 times take profit instead of the 2 or 3 times risk. Either way when you use a dynamic stop loss you get much more realistic exit points instead of hopeful ones. Happy trading!
You wouldn't get in deeper trouble. You adjust your risk and price per pip so risk the same amount per trade even if your stop loss is different each time.
hello any one tell me abou how to use in in curencry pair and what abou to sell we should add or subtract the atr vaulue please tell me thanks i m so confues
NEVER NEVER NEVER except NEVER. UR INVITING A CROOK TO RIP YOU OFF. THE HEAD OF THE SEC TOLD ME I WAS VICTIMIZED BY A ‘greedy floor trader” triggering a 24. Stop loss on a 34. ETF [ewc] a ten dollar split second dip. BS. don’t be stupid. Why “advertise” your willingness to sell anything lower than the actual price? There is ALWAYS a crook.
why do you say that with a lower stop loss you will lose extra money? The risk per trade is defined by how much you are willing to risk per trade. So, If I have a trading account with 10k and I risk 2% then I risk 200 in each trade. Where I put the SL doesnt matter. If the SL is wider then I am gonna buy fewer shares in order to have 200$ risk. If it is tighter , then I am gonna buy more shares .
really good guide and easy to understand but i have a question when we go for a sell should we do a addition and not a subtraction so basically the opposite thing
You would usually want to set it at the recent highest low of the current trend. The trend breaks when a candle goes beyond the lowest low, by comparison.
Unless I miss something because no one's perfect I did not see an example of it going down, just up. I tried your example going down and it went into my profit I'm, confused🤔
You explained for long position so we shoud do this PRİCE-ATR=STOPLOSS but what about for short position? For short position should üe use this formula PRİCE+ATR=STOPLOSS?????
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