One can possibly reduce their affect by; (total avoidance is impossible) Assuming the rebound continues in the original direction â recognize this is a whip (meant to get weak traders out) They often happen just before price makes a significant move Take a B/E stop⦠the reenter the trade once price resumes =========== Improving your entries â likely youâre getting in late â iow away from the point where the trade actually fails â consequently price has the âroomâ to move about ============ Trading when volume is present; during low volume times price is more prone to getting whipped â comes with the territory =================== Ultimately these whips will occasionally occur â study the conditions where they happen â then adapt They leave telltale signatures â learn them Butâ¦, no matter what â never compromise on using stops â they save your ass ==================== Consider the possibility you're trading too volatile an instrument Too volatile for your personality / skill (not a slam, rather a possibility to consider) RN
Stop loss should defend on the time frame you're trading. Look for congestion and put your stop above (if you're short) or below (if you're long) the congestion and DO NOT move your stop loss if the price is going against you. Cheers, FxTurtle
Either more so positional trade and look for setups with prudent risk/reward--like maybe buying crude when it was near 91/92 a month ago before the move up to 100 and using an SL on that long of maybe 90.50 or 89.xx-- or scalp and have at least a bigger gain/max loss per trade ratio (winners>losers). Personally I prefer to have a thesis have to be proven wrong reasonably as opposed to getting caught in the crossfires of a stop hunt or algo burst that is just overshooting to flush people out.