Crude Oil - What is the startegy to put a Stop Loss over a 5 minute chart on Day Trading?

General
1

Need a help

I’m kind of unable to decide what stop loss to use while trading Crude on a 5-minute chart (trading between 6 PM to 10.30 PM) either going on a long or short. My target is always a 10 point move but I tend to put a too close SL that I see frequently hit…

Just came across this point from this book ‘Mastering The Trade: 2nd Edition by John Carter’, he says

“…if you are unsure of what stop to use, then you can place the 14-period average true range(ATR) on your chart, double the current value, and use that as your stop”

Will this work? I could not find ATR in PI indicators about ATR

2

I WOULD LIKE TO SUGGEST YOU NOT USE A SMALLER TIME FRAME FOR TRADING, OTHERWISE U WILL END UP LOOSING A TRADE, INSTEAD GO FOR HIGHER TIME FRAME 30MIN OR 1 HR

ONCE U CAN SEE THE TREND JUST PUT A BUY OR SELL ORDER AS PER THAT.

ALSO THE TIME 6 TO 10.30 IS VERY VOLATILE. AT THIS TIME GLOBAL MARKETS OPEN HENCE A HUGE VOLUME ENTERS.SO A SMALL STOPLOSS OF 15 TO 20 POINTS CAN TRIGGER AT ANYTIME.

I WOULD SUGGEST YOU TO SEARCH FOR A SUPPORT AND RESISTANCE AND PLACE YOUR STOPLOSS NEAR IT ALSO LOOK FOR SOME INDICATORS TO DOUBLE CONFIRM YOUR ENTRY.

ALSO PI HAS ATR (AVERAGE TRUE RANGE) IN NAME OF TRUE RANGE, YOU CAN FIX UR STOPLOSS AS PER TRUE RANGE FOR EXAMPLE

IF IN CRUDEOIL CHART SHOWS A TRUE RANGE VALUE OF 25 POINTS IT MEANS A 25 POINTS SINGLE CANDLE HAS BEEN OCCURED SO UR STOPLOSS FOR SINGLE CANDLE SHOULD BE ATLEAST 25 POINTS, THIS VALUE CHANGES WITH VARYING CANDLES.

HOPE ALL UR QUESTION ARE ANSWERED, STILL IN DOUBT DONT HESISTATE TO ASK....

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3

In 5 min chart, wherever you put your stops, the crude comes and hits. its better to take a 30 min chart and put stops on basis of supertrend.

4

Plot 89 EMA. If price touches it then exit your position.

5

For a 5 mins TF use 50 EMA line as your stoploss.

Eg: You should buy when the candle crosses and closes above 50EMA. Stoploss would be when the candle crosses and closes below 50EMA.

6

Hi Moiz

Not sure where are you based but for almost lat one year I stopped trading and basically invested in learning from real professional trader here in Singapore. What you had suggested about a year back is very close to what these professional trader spoke to me while I was learning.

Last one year has been very hectic to learn the trading (the real trading though)! I’ll be entering to the market soon with tools, knowledge, and the lessons I learned from the past one year! Making money in India market is very difficult but I’m impressed with the liquidity coming from retail (the dump money).

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