Quote:
Originally Posted by Stuart14
I've annoyingly been stopped out on the cable trade. Stop above yesterdays high, hit- passed by about 20 pips and now reversing.
Trading is frustrating as hell sometimes!
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All part of the learning curve, Stuart.
As you have found out, moving your stop based on the previous day's extremes is not the way to do it. Yesterday's bar confirmed the previous bar (Feb 23) as a SWING HIGH, therefore a better place for your stop would have been a few pips above that high. My stop was even further away at major resistance at 1.4760 but is now moved above the swing high.
I anticipated the Feb 23 as a swing high because, to me, it was an exhaustion bar at minor resistance with a few cycles topping at that time and together with volume, seemed like a good place.
Also notice the 50 acting as resistance and the 20 bouncing off it.
The major support at 1.4130 holds the key to future direction.
Hope this helps.
Rock n Roll,
Strat