When is a set up invalidated?

krist

Active Member
#1
Hi all,
was just wondering about when to get out of an intraday trade when price moves against us after the entry ( 5 min TF) : So when would we call a setup like HnS or double top etc. has been invalidated? Depending on price, time or some other factor? No doubt all the TA books tell where you should place your stoploss, but am aiming at active trade management to minimize the loss. Would seniors please throw some light on it? Or point to some resource?

Regards
Krist.
 

krist

Active Member
#2
This is what I was looking for, and I am mentioning it here for help of other newbies who would be backtesting like me. And its by Smart trade, so I thank him for these words.

" If the breakout/breakdown fails and the market closes in the range which it broke then it is a breakout failure and better to get out of your position without waiting for stoploss to hit ......"

This would definetly minimize my loss, which is what I was looking for.
Regards
Krist.
 

mastermind007

Well-Known Member
#3
This is what I was looking for, and I am mentioning it here for help of other newbies who would be backtesting like me. And its by Smart trade, so I thank him for these words.

" If the breakout/breakdown fails and the market closes in the range which it broke then it is a breakout failure and better to get out of your position without waiting for stoploss to hit ......"

This would definetly minimize my loss, which is what I was looking for.
Regards
Krist.
For practical purposes, you will have to treat closing price at 3:20PM as Closing price for you to exit out of the trade. You cannot wait for 3:30 close to exit out of the trade.

Also, if your broker has provision to do "auto square off at 3:15PM", make sure that you do prevent it from happening.
 

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