The Stop out level in forex’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition.
When you enter the market on a stop entry, the market moves into your order on momentum that is in-line with the direction you want to trade. This has the added advantage that price is already moving in the direction that you are trading at the time of entry and often results in your trade moving into profit quickly. If you are trading an inside bar setup for example, you do not need to sit there waiting for the market to break past the mother bar high or low to enter. Instead, you can simply place a buy stop or sell stop just above the high or low of the inside bar and then go do something else. If you set an on-stop entry order and then walk away and let the trade play out, you are trading with discipline.
Once you start to see success trading in this manner it will begin to reinforce the discipline you had to put forth to set your order up and walk away. Using stop entries to enter the market in-line with fresh market momentum is an excellent way to take advantage of this entry type. In the chart image below, we see a EURUSD pin bar sell signal that formed shortly after a down move in the market that followed a strong up trend. In this case, the pin bar signal actually kicked off a very large move lower and formed very early in the new downtrend. Using on-stop entry orders can help get you into new trends early. In the chart image below, we can see an inside bar setup in the AUDUSD that we discussed in our June 27th commentary.
The recent sell-off in the spot Gold market has been widely discussed on our site and if you knew how to use sell-stop entry orders properly you did not have to waste time waiting for the big moves to trigger. In the chart image below, we can see two recent price action sell signals in the Gold market that you could have entered on sell-stop orders. Note: On the three examples above, whilst they are all sell-stop entries, buy-stop entries work just as well and everything above applies for buy-stop entries too. What good is knowing the advantages of on-stop entry orders if you don’t know HOW to place them? There are three easy ways to open the order entry screen in MT4. F9’ button on your computer when you have the MT4 platform open, doing so will also open up the above order entry window.
These are the three main ways to open up the order entry window in MT4. Forgetting about a pending order with no expiry can cause you to enter the market when you aren’t expecting to or don’t want to, this obviously can result in an unplanned loss. MT4 trading platform in today’s lesson. Nial, I am really grateful for providing this valuable information. You’re too much in your explanation, I have really understood it.
I look forward to learning more from you. Nial: I do like your philosophy and this style of trading. This makes sense to go with the momentum of the markets at a certain juncture and as your pin style indicates which is just a small support level to be broken through to the short side as your illustration indicated. 4 platform snapshot make it superb. I get answer on that my thinking. I save up time, four days!
Actually this type of order is using more for brakeout edge, but I am arfaid from them. Thank you very much for this advice. You are doing a great job! Always waiting for your next great write-up. I have been using on-stop orders for a long time and as my preferred method of entering trades. Your teaching style is definitely the best and you make things so simple. God bless you, Nial for sharing your knowledge with us all.
I should have chosen you as my mentor earlier and avoided all the mistakes I made in my trading. Your teachings are worth hundred times more than the investment I made by becoming a member. Thanks Nial for the wonderful info! I would rather use limit and then adjust my SL accordingly rather then Stop Order.
When you use Stop Order it means you are a breakout trader. Thanks for a great article Nial. I’ve yet to practice with stop buy and sell orders, but this article gives me more confidence to try it. How is it that you seem to know all mistakes we commit in trading? 3000, i just hate instant execution of trade . I thought I knew all of this BUT STILL, you are pointing this out in a way that make me understand it!