In regards to trade entries on breakout trades, when on the long side of a trade do you place your stop at the most recent swing high or the most recent swing low? Obviously it is a much tighter stop at the most recent previous swing high. Or do you give the trade a wider stop to prevent premature stops and place it at the previous swing low?
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Stop Target at the most recent swing Low or High when trading Long
- Thread starter trademan1
- Start date
I will place it below the previous swing high and give it a few more ticks so I am not prematurely stopped out.In regards to trade entries on breakout trades, when on the long side of a trade do you place your stop at the most recent swing high or the most recent swing low? Obviously it is a much tighter stop at the most recent previous swing high. Or do you give the trade a wider stop to prevent premature stops and place it at the previous swing low?
I will place it below the previous swing high and give it a few more ticks so I am not prematurely stopped out.
Isn't that a pretty tight stop? If trading a breakout of the most recent high, that can't give too much room right? On the long side of a trade, wouldn't placing it a couple ticks below the most previous swing low give some more space to prevent premature stops?
It is tight but with a breakout it either becomes a winner quickly or fails just as quickly. That being the case I want out as soon as it fails to do as I expected. Having said that nothing would prevent me from re entering the trade if technicals permit. Typically my breakout trading would like this.
Break and does not touch the stop and I stay in until I reach a technical exit.
Or
Break, price retests precious resitance that has now become support. Likely I will be stopped out for a small loss but I would re enter long upon completion of what would now be a double bottom pattern or an inverted head and shoulders. These for some reason seem to result in the most profitable trades.
Or
Failed breakout with a reversion to the mean. I often do not trade these just because I dont feel the potential profit is there.
Or
Break to the other side after a failure. These trades will be choppy so Intrade these on a retracement.
Sorry about a long answer to your question.
Break and does not touch the stop and I stay in until I reach a technical exit.
Or
Break, price retests precious resitance that has now become support. Likely I will be stopped out for a small loss but I would re enter long upon completion of what would now be a double bottom pattern or an inverted head and shoulders. These for some reason seem to result in the most profitable trades.
Or
Failed breakout with a reversion to the mean. I often do not trade these just because I dont feel the potential profit is there.
Or
Break to the other side after a failure. These trades will be choppy so Intrade these on a retracement.
Sorry about a long answer to your question.