5 min chart, when to move stop up?

Discussion in 'Technical Analysis' started by Technician, Nov 4, 2009.

  1. hey guys, I'm a losing trader and would appreciate anything constructive

    today I traded LNY breakout of yesterday's high. my target was R1. my question is when to move the stop up. I moved it to what I thought was a higher low, and then I got stopped by a couple cents soon after. what counts as a higher low?

    I trade on a 5 min chart, but attached is 10 min
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  2. speres


    I'll try and answer some of your concerns but im a bit hungover today, but I'll try and make some sense :) hoping to get out on the bike today actually but anyways......

    Well looks like your trading after a news event,the wide spread up bar, (now that bar is a very strong bar with no real selling into from the pros,) and your looking at the breakout of a daily high.... which is fine, so you can expect further strength, and anticipate the break of the daily high. Now, theres a few clues in that range after the wide spread bar that leads to the breakout....

    After a breakout you usually get a pullback or a test of the support and you should be expecting one, so, if you traded the initial breakout then you could and probably should be taking profit on any sign of a pullback. which would be a break lower than a previous bar. sometimes price holds on a strong breakout and you wont get a retest..A trained eye will spot this..Theres actually some clues in the price action after the breakout that shows that we going to get a test of support, pips are pips so profit takin is always good, matters not if you only get half the move,If you leave the trade open, then a break lower of support WILL close the trade.

    trading 5min supp and res be careful because quite often price will breakout and reverse quite often, obviously, daily highs and lows require more effort so a break is more genuine. So after the breakout and the swing up, that is now your resistance 1 and this WILL act as your next res or line in the sand. your higher low will be the swing down to supp.

    Do be aware of supp and res of the higher tfs becuse these will stop a rally and you need to know where they are.....A few points there to get the old brains cells moving, hope I made sense....
  3. craig


    The best advice i can give you is to stop trading 5M charts.

    They move way to fast and the signals are much less reliable for new traders.

    You probably wont listen to me but if you start out on daily time frames and move your way down you may be able to profit off of a 5M chart someday but until you have proven yourself on higher TF's you will most likely fall into the 95% of traders that consistently LOSE!
  4. craig, if I don't listen to you, it's because I can't. daily price action doesn't act the same as intraday, the latter which I've spent months on. your post only puts me down and gives nothing constructive.

    thank you for your input speres
  5. speres


    I'll add its best not to trade the actual breakout bar because it might not be a breakout. A trained eye will be able to see if its going to breakout or not, but for the less experienced trader look for a decent breakout bar then trade the next bar if it tests or a pullback and test of supp..

  6. I would respectfully suggest that you learn or (re-learn) that markets often test (and sometimes retest) price levels such as "higher low".

    So the fact that you were stopped out within a couple cents of this level is not suprising and in fact will happen a lot over time. Many professional traders actually wait until they see piker stops get hit in order to enter the trade.

    There is no scientific answer, but the art form is learning to spot those headfake re-tests of a price level and not let yourself get whacked out of a good position.

    Here is a tip: they usually happen on lower volumes - which makes sense if you think about it. If the volume was higher, it would not be a test + bounce again, but the market would probably push lower.
  7. craig


    Your exactly right my friend!

    You have said it yourself, The only difference in PA from lower TF's to higher TF's is the fact that support and resistance are not respected as well which in and of itself makes its less reliable. Am i wrong?

    And if the way i wrote made you feel "put down" in any way i am sorry for that. It was not my intentions to do so.

    Everything i said was truly an effort to help you.

    I will say it again though your chances of learning to trade on M5 are 1 in a million!

    I could put a profitable M5 system in front of you and you would still lose.

    The reason?

    It's too FAST! Trading is 95% psychological 5% system! your inexperience with dealing with your emotions will KILL you on M5.

    Like i said im really trying to help you here, to succeed in trading you must do the opposite of what feels right a lot this could be the first step for you.