We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 1.71% Gold: 0.58% Oil - US Crude: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/XnIMS4xarU
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.79% 🇳🇿NZD: 0.52% 🇬🇧GBP: 0.46% 🇪🇺EUR: 0.24% 🇯🇵JPY: 0.09% 🇨🇭CHF: 0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/3TmObf8qMo
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.39%, while traders in US 500 are at opposite extremes with 75.15%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wjEN7NrhgH
  • #USDKRW down with the pair trading just within the range of the uptrend. Do you think it will break this week? https://t.co/FvyNYJy701
  • Forex Update: $USD continues to weaken against its major counterparts, led by $AUD (+0.86%), while $JPY lags behind (+0.11%). https://t.co/5wayEueKCi
  • GBP/USD: cluster of recent lows around the 1.2160 level and the Tuesday’s low print at 1.2190 may act as the first level of support for the pair. Get your $GBPUSD technical analysis from @nickcawley1 here:https://t.co/yvGzi5hoQw https://t.co/9qFx1oKZsE
  • Market snapshot: - US equity futures pointing lower while #AUD and #NZD are trading higher vs USD and JPY
  • Heads Up:🇰🇷 Markit Manufacturing PMI due at 00:30 GMT (15min) Previous: 41.6 https://www.dailyfx.com/economic-calendar#2020-06-01
  • #USD, $GBP, EUR & AUD Brace for Cross-Continental Political Peril ⬇️ https://www.dailyfx.com/forex/fundamental/article/special_report/2020/06/01/USD-GBP-EUR--AUD-Brace-for-Cross-Continental-Political-Peril.html
  • 🇰🇷 Exports YoY Actual: -23.7% Expected: -22.1% Previous: -25.1% https://www.dailyfx.com/economic-calendar#2020-06-01
Manage Stops Like a Professional

Manage Stops Like a Professional

2012-05-10 19:27:00
Walker England, Trading Instructor,
Share:

Many traders express anxiety prior to entering into a trade and for good reason. There are many factors to consider when developing a trading plan for order entries. There are thousands of variables including different time fame charts, indicators, trends, and charting patterns to select from. We often get so caught up in this process that we forget that actively managing an existing position can just as difficult and is considered an important part of any professional trading strategy.

Below we have a graph depicting the breakout on the NZDUSD, mentioned in the May 2nd edition of Chart Of The Day. Our entry was set to trade a breakout under .8040. Stops were primarily placed 200 pips away at .8240 and limits were set 400 pips below our entry at .7640. Now that our trade is moving in our favor by over 150 pips, we can select a variety of methods to manage our stop as price heads towards our profit target.

Manage Stops Like a Professional

PSAR trailing stops can now be automated for the FXCM Trading Station. Get the SAR Trailing Stop Program HERE.

PSAR (Parabolic Stop and Reverse) is an excellent indicator embedded inside of marketscop that can be used to manage stops. The indicator itself was invented by Wells Wilder to assist in finding market trends. Ifprice is below a red SAR dot as pictured below, this is indicative of a downtrend . When price is in an uptrend the SAR dot will appear in green below price.

Traders can use PSAR to manage their positions in the fashion of a trailing stop. During strong trends, price will head in one direction for a long period of time. As pictured below, we can see in a downtrend, price will remain under our red PSAR dot as long as momentum is continuing. To take advantage of this, our stops can be moved forward to the position of the current SAR dot. In the chart below, this point is residing near our opening price at .8040. This will trail our stop forward approximately 200 pips from its primary position. Each day as a new SAR dot is created, we can continue this process of updating our stops and locking in profit as our trend continues.

Manage Stops Like a Professional

My preference is to continue to hold our NZDUSD trade as outlined on May 2nd. The stop should be updated in line with the current PSAR reading, thus moving the stop to .8040. Our primary target will remain at .7640 in search of a 400 pip profit target.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com .

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.