EURUSD
Sergeant Major
- Messages
- 1,130
As I mentioned earlier, how many pips you can profit from a trend if it moves 150 pips? You are good if you can take 50% out of the 150 pips move. But how far to put between your Entry Price and Stop Loss consider profitable in this range of trading area? 50% out of 150 equals 75 pips, your maximum of Stop Loss should be only 30 - 35 pips to achieve a good Reward Ratio. If more than that, the trend is no more your friend.
There is long-term trending movement and there is short-term trending movement so if the trend has moved 150 pips for today, as example. If the trend is long-term trending so it is possible that the next day will continue the previous day direction. But if the trend is not long-term trending so it is possible that the price is moving in sideways condition or moving reversal. So, it's not always trending movement ending in a day or 2 days or several days only, traders need to know tendency for market's movement as long-term.